Factors of Production
Physical actions & mental abilities of people
What is labor?
This form of competition has only one seller of a good/service.
What is a Monopoly?
Supply is driven by this party.
What is a seller/supplier?
Demand is driven by this party.
What is a consumer?
When a resource is limited.
What is scarcity?
Natural resources
What is land?
This form of competition has near identical goods.
What is perfect competition?
When the price of a good goes up, then supply goes...
What is up?
When the price of a good goes up, then demand goes...
What is down?
Economic goods become less useful with each additional unit consumed.
What is diminishing returns?
Money or machines used to produce goods.
What is Capital?
This form of competition has difficult barriers to entry causing it to have few firms.
What is a Oligopoly?
When supply exceeds demand.
What is a surplus?
Goods that can be easily used in place of another.
What is a substitute?
What we lose when we make a decision.
What is opportunity cost?
Organization of labor, land, and capital to make a good or service?
What is entrepreneurial ability?
This form of competition uses a lot of advertising to convince consumers that "their differentiation" is what the consumer wants.
What is a monopolistic competition?
When demand exceed supply.
What is a shortage?
Items and/or services that are typically sold together.
What is a complement?
Financial incentives given to businesses from the government to help with production of goods and services.
What are subsidies?
Businesses buy factors of production from households through this.
What is the resource market?
This type of Monopoly occurs when the barriers to entry are too great for competitors to enter the industry OR it’s more efficient for one group to run an industry.
What is a Natural Monopoly?
Max price set by government that can be charged for goods and services.
What is a price ceiling?
How much demand is impacted when the price of a good/service changes.
What is demand elasticity?
A product or service that every member of society can consume freely without reducing its availability to others.
What is a public good?