What is Economics?
What is economics?
The study of how people make choices with limited resources.
What is a command economy?
In this system, the government makes most of the economic decisions
What is a sole proprietorship?
A business owned and run by one person
What is demand?
The amount of a good consumers are willing and able to buy at different prices
What is supply?
The amount of a good producers are willing and able to sell at different prices
What is scarcity?
The problem that people have unlimited wants but limited resources.
What is a market economy?
In this system, buyers and sellers make decisions through supply and demand
What is a partnership?
A business owned by two or more people who share profits and responsibilities
What is the law of demand?
As price goes up, quantity demanded goes down
What is the law of supply?
As price goes up, quantity supplied goes up
What are the factors of production?
Land, Labor, Capital, and Entrepreneurship.
What is a mixed economy?
The type of economy the U.S. has, combining market and government influence
What is a corporation?
A business that is legally separate from its owners, who are called shareholders
What is a demand curve?
A graph showing the relationship between price and quantity demanded
What is a supply curve?
A graph showing the relationship between price and quantity supplied
What is opportunity cost?
The next best alternative you give up when you make a choice.
What is a traditional economy?
In this system, decisions are based on customs and traditions passed down over time
What is unlimited liability?
When owners are personally responsible for all of a business's debts
What are complements?
Goods used together, like hot dogs and buns
What is decreases?
If the cost of materials or wages goes up, supply does this
What are the three basic economic questions?
What to produce, how to produce, and who will produce it.
What is the invisible hand?
Adam Smith called the way markets guide themselves this
What is limited liability?
The corporation advantage where owners can only lose what they invested
What is a change in quantity demanded?
A change in a good's own price causes this, not a shift of the whole curve
What is a surplus?
When quantity supplied is greater than quantity demanded