What is Economics?
What is Opportunity Cost?
The cost of the next best alternative when a choice is made
What is capitalism?
An economic system which private citizens own factors of production
What are the 3 business types?
Sole Proprietorship, Partnerships & Corporations
What is demand?
The desire, ability, and willingness to buy a product
What is Supply?
The amount of a product that could be bought at all possible prices that could prevail in the market
What is a Free Enterprise Economy?
Where consumers and privately owned businesses answer the three basic economic questions
What is a Mixed Economy?
An economic system in which free economic activity is subject to some government intervention and regulation
What is a Non-profit Organization?
An economic institution that works in a businesslike manner but does not seek financial gain
Area of economics that deals with behavior and decision making of small units
What is Microeconomics?
Cost that a business incurs even if there is little or no activity
What is Fixed Cost?
What is Gross Domestic Product?
Dollar value of all final goods, services, and structures produced within a country’s borders in a 12 month period
What are Private Property Rights?
People are allowed to purchase, own & sell property as they wish
What is a Labor Union?
An organization of workers formed to represent its members interests in various employment matters
What is Income Effect?
Change in quality demanded due to a change in price that alters a consumer’s real purchasing power
The number of units sold multiplied by the average price per unit
What is Total Revenue?
What are the Factors of Production?
Land, Capital, Labor, Entrepreneurs, Production & Decision-making
What is Profit Motive?
Motive for people to perform and be productive
What is Principal?
Amount borrowed when getting a loan or issuing a bond
Products that can be used in the place of others
What is a Substitute?
What is a supply curve?
A graph showing the various quantities supplied at each and every price that might prevail in the market
What is Scarcity?
Unlimited desires but limited resources
What is a Traditional Economy?
Am economic system in which basic economic activity stems from ritual, habit, or custom
What is a vertical merger?
Companies involved in different stages of manufacturing merger
A measure of responsiveness that shows how a dependent variable responds to a change in an indecent variable
What is Elasticity?
What is Production Function?
A figure that shows how total output changes when the amount of a single variable input changes while all other inputs are held constant