What is Economics
What is Microeconomics?
Study of individual economics
Why do we trade
What is a traditional economy
Historically oldest
How much the demand of something will strecth
What is supply
The amount of a product that could be bought at all possible prices that could prevail in the market
What is Macroeconomics?
The study of group economics
What is a Economic System?
Organized way for providing for the wants and needs of society
What is command economy
The state dictates the production of goods and services
Will people pay more for elastic or inelastic resources
Inelastic
What is a supply curve
A graph showing the various quantities supplied at each and every price that might prevail in the market
What determines economics?
Cost of everything, spending, saving, earning
What were the earliest forms of currency
Beer, wine, rum, salt, shells
What is a free-market economy
Consumers drive the production of goods
"Law of demand" says
when prices drop, consumers demand more; when prices rise, consumers demand less
What are characteristics of supply
amount of product at different prices, supply curve, change in supply
What is a Opportunity Cost?
What do you give up for something else
What is fiat money
Actual money in dollars and coins
What is the difference between a partnership and corperation
partnerships are owned by 2 or more people and corperation is publically traded
Factors that affect demand
supply, popularity, current events, price, taxes
What is "law of supply"
more products will be offered by producers at higher prices, suppliers normally offer more for sale at higher prices and less at lower prices
What are three factors of production
Capital, Labor, Money
What is the PPF
The production possibilities frontier curve which relates what is being produced and what is not
What is a franchise
What economies does the law of demand apply to
Free-market economies
What causes change in supply
Cost of resources, productivity, technology, taxes, expectations, number of sellers