Basics of Economics
The study of how individuals, businesses, & households make decisions
What is Microeconomics?
Individuals and Businesses have all the influence
What is a Market Economy?
The production process makes...
What are goods and services?
Discusses the efficiency of free markets and the "invisible hand" that guides buyers and sellers
What is The Wealth of Nations?
The value of the most important thing you give up when you make a decision
What is Opportunity Cost?
The study of how an entire economy functions
What is Macroeconomics?
Government controlled, usually a dictator
What is a Command Economy?
What is land?
A list of options you give up when you make a choice
What are Trade Offs?
A model for understanding the tradeoffs an economy must make when dedicating its scarce resources
What is the Production Possibilities Frontier?
The production, distribution, and consumption of limited resources
What is an economy?
The private sector and government work together
What is a Mixed Economy?
The time and effort put into production where someone is paid
What is labor?
What you gain by adding one unit of something
What is Marginal Benefit?
How efficient or ineffecient the economy of a country is
What the PPF measures?
A voluntary exchange of goods
What is trade?
Cuba
What is an example of a Command Economy?
The knowledge in the brain of a worker, or the tools used in a factory
What is capital? (Human and Physical)
When something has already been spent or done, but cannot be recovered
What is a sunk cost?
New Technology, New resources, or increase in productivity
What are the things needed for the economy to grow on a PPF chart?
Examples: Pencils, Oil, Processor Chips
What is specialization of goods?
Often hunter-gatherer type societies;
What is a Traditional Economy?
Productivity equals.... (DAILY DOUBLE)
Output/Input
A motivator to purchase a product or select a service
What is an incentive?
The curve on a PPF graph
What is the idea that not all resources are easily adaptable for different products?