Economic Basics
The study of how people meet their wants and needs.
An organized way for producers and consumers to trade goods and services.
Market
In this type of economic system, the three basic economic questions are answered using traditions and customs.
Traditional economy
A graph showing different combination of making two products with limited resources.
Production Possibilities Curve
This is a plan that shows income and expenses over a period of time.
A budget
Having a limited quantity of resources to meet unlimited wants.
Scarcity
Resources that humans make in order to make other products
Capital
In this economic system, the government answers the three basic economic questions.
Command economy
Someone who takes a risk by starting a business
Entrepreneur
This is the price paid for borrowing money.
Interest
The cost of your next best option.
Opportunity cost
Wood, water, iron ore, sand, cows, etc.
Land
In this economic system, producers and consumers work together to answer the three basic economic questions.
Market economy
This type of economics looks at countries and things like trade and GDP
Macroeconomics
By doing this, you are using money you already have with the hope of making more money.
Investing
Having two options and then picking one is called a _________-______
trade-off
The three basic parts of the circular flow model
1. Houselholds
2. Business
3. Government
In this economic system, there is a mixture of characteristics from command and market economies.
Mixed economy
How do economist measure a country's economy?
Using gross domestic product (GDP)
This is a risky type of investment where you share ownership in a company.
A stock
_______________ are people or businesses who make and sell products and the _____________ are the people of businesses that buy products.
Producers, consumers
Companies profits can be affected by this, which is the struggle among producers for consumers' money.
Competition
What are the three basic economic questions?
What to produce, how to produce it, who gets it once it's been produced?
Give an example of human capital
education, training, skills
This is a certificate issued by a company or the government promising to pay back borrowed money with interest. It is also a safe form of investment.
A bond