Introduction to Economics
Define Economics.
Study of how people make choices with limited resources.
Resources used to prudence goods and services.
Define Economic System.
The way a society organizes the production and distribution of goods and services.
Define Demand.
The amount of goods people are willing and able to buy.
What is the system used in the United States to elect the President?
Electoral College
Define scarcity.
Not having enough resources to satisfy all wants.
What are the four factors of production?
Land, Labor, Capital, Entrepreneurship
Define Traditional Economy.
Based on customs, traditions, and habits
Define Supply.
The amount of a good producers are willing to sell.
What is the lowest level of courts in the US court system?
Trial Courts
Define Trade-Offs.
All the alternatives you give up when making a decision.
What is land (first factor of production)?
Natural resources, raw materials from nature.
Ex: water, trees, minerals, oil, farmland
Define Command Economy.
Government controls production and decision.
Ex: North Korea
Define Equilibrium Price.
The price where supply and demand meet.
Name the major countries in the Axis and Allies
Axis - Germany, Italy, Japan
Allies - USA, Britain, France, USSR
Define Opportunity Cost.
The next best thing you give up when making a choice.
What is labor (second factor of production)?
Physical and mental effort people use.
Ex: teachers, construction workers, doctors, factory workers
Define Market Economy.
Individuals and businesses make decisions.
What happens to the price when demand goes up, but supply goes down.
The price will go up.
Name one special power given to the Senate.
Filibuster, confirming presidential appointments, treaty ratification, impeachment trials
Give me an example of an opportunity cost.
I choose seeing friends over homework and video games. Homework is my opportunity cost, because it was the next best decision.
What is entrepreneurship (four factor of production)?
The person who organizes the other factors. Takes risks to start a business.
Ex: business owners, innovators
Define Mixed Economy.
Combination of market and government control.
What happens when supply goes up, but demand goes down?
Prices go down.
What is Mr. Miller's favorite sports team?
Chelsea FC