Scarcity & Function
Define Scarcity
The Lack or rareness of a material, that its hard to replace
The Law of Supply States
As Price Increases, Supply Increases
The Law of Demand States
As Price increases Demand Decreases
The Process of the value of money declining over time.
What is Inflation
This is the Kind of Economic System found in 97% of Countries on earth today
What is Capitalism
Land
Labor
Capital
Entrepreneuership
As Supply moves to the LEFT, What Happens to the Price?
Increases
What Determines Demand?
The Value of an Item, Changes in Taste by consumers, The Price it costs
The Germans in the 1930's and the Country of Zimbabwe had this issue happen to them, when they wouldnt stop printing Money
What is Hyperinflation
What is Communism
What is Incentive?
The Motivation behind the Decisions you make
What Determines Supply?
Natural Resources,Consumer Taste, Cost of Producing the Item...
When you see an item go up in Price, and decide an alternative is OK
Substitute Effect
When the value of money Increases
What is Deflation
When the Market determines prices, and private business is left to sort things out
Free Market Economy
What is Opportunity Cost?
What your trading when you make a decision, What you gave up and to do what you want
As Supply Moves right, what happens to the Supply of the Item?
Increases
When Deamnd Increases, Which Way does the Line Move on the Curve?
To the Right
People on Social Security
The Rich
When the State is in control of setting prices and production
Command Economy