Vocab
Economics is
What is the study of how people satisfy their wants and needs?
An activity that someone pays another person or group to do
What is a service?
The arrangement that allows people to buy and sell things
What is the market?
Economic system in which the consumers make decisions
Relies on habit, ritual and custom to decide on production of goods and services
A surplus is
What is an excess amount of something?
Land, labor and capital
What are factors of production?
A person or group of people living in a residence
What is a household?
Inventor of communism
Karl Marx
An organization that uses resources to create goods an services
What is a firm?
Goods are
What is a physical object?
An alternative that we sacrifice when we make a decision
What is a trade-off?
What is a want?
Adam Smith
The ability for one person or nation to produce a good or service at a lower opportunity cost than that of another person or nation
What is comparative advantage?
Incentive is
What is a reward for something?
Total sales - total expenses =
What is profit?
Something you have to have to survive
What is a need?
A economic system in which the central government makes decisions on production and consumption
What is communism?
How people are living daily. How easily they can access necessary resources. How much money does someone make.
What is standard of living?
Opportunity costs are
What is when you sacrifice one thing for another?
Struggle between two producers to get a consumer to choose them
What is competition?
When you are forced to make choices based on your limited resources, typically money
What is scarcity?
The two sectors of the economy
What is public and private?
There are to types of capital
What are physical and mental capital?