Economics 101
What is economics?
How society manages its scarce resources
What is supply?
The amount a supplier is willing and able to supply at a certain price
What is demand
Deals with quantity and price
What is a sole proprietorship?
Business owned and managed by a single individual
How old can you to be considered employed?
16 years old
What is scarcity?
What is limited quantities of resources?
What is law of supply?
producers Create more of a good when it’s price increases and less of a good when price decreases
What is law of demand
Price increases and demand decreases
What is a disadvantage of a sole proprietorship?
You are completely liable
Who makes up the labor force?
People who are employed and unemployed
What are the four factors of production?
What is land, labor, capital, and entrepreneurship
When price goes up
Existing firms will produce more
What is elasticity of demand
A measure of how consumers react to a change in price
What is an advantage of a partnership?
Easy to start up
What is a conglomerate?
Merger of at least three companies that produce completely unrelated goods or services
What is a trade off?
When you choose one thing over the other
When price goes down
Existing firms will produce less
What are substitute goods?
Goods used in one another
What is a partnership?
Two or more people who agree on a specific division of responsibilities and profits
What is a merge?
When two or more companies decide to combine
What is opportunity cost?
Whatever has to be given up to obtain a trade off
What is a supply curve
Graph representing a supply schedule
What are complementary goods?
Two goods that are bought and used together
What is a natural monopoly?
Market that runs most efficiently when one large firm provides all of the output
What is a vertical merger?
Two or more firms involved in different stages of making the same good or service