Basic Concepts
Something you can physically buy and sell.
What is a good?
This type of market is where goods and services are bought and sold.
What is a product market?
This model shows how money, resources, and products are exchanged in an economy.
What is the Circular Flow Model?
This factor of production includes raw materials and natural resources.
What is land?
This cost represents what is given up when an economic decision is made.
What is opportunity cost?
Every decision made has this (Doesn't necessarily have to be bad)
What is consequences?
This participant in the market uses goods and services to satisfy wants and needs.
What is a consumer?
This curve shows the combinations of goods an economy can produce.
What is the Production Possibilities Curve (PPC)?
The human resources used in production are classified as this factor.
What is labor?
The study of how people use scarce resources to satisfy unlimited wants and needs is the definition of this.
What is economics?
Describes people/firms that provide/make goods and services
What are producers?
This type of market is where the factors of production are bought and sold.
What is a resource/factor market?
On a PPC, this point represents a combination that is impossible to attain under current conditions.
What is a point outside the curve?
Money invested to start a business falls under this category of factors of production.
What is capital?
These three questions must be answered by all economic systems due to scarcity.
What are "What to produce?"
"How to produce?"
"For whom to produce?"
This paradox states that wants are sometimes more valuable than needs.
What is the paradox of value?
In the circular flow model, households act as suppliers in this market.
What is the resource/factor market?
This event would cause the PPC to shift outward.
What is a technological advancement?
This factor of production takes risks and brings together the other factors to create a product or service.
What is an entrepreneur?
When making an economic decision, considering the value of the next best alternative is evaluating this.
What is the opportunity cost?
This fundamental problem is the reason all economic systems must answer the three basic economic questions (Think about the Dialysis activity)
What is scarcity?
Communism is mostly associated with this type of Market
What is Command Market?
In the circular flow model, this flow represents the payment for goods and services.
What is the flow from households to the product market
You can increase this by gaining more skills or becoming more educated (Think about Lebron James).
What is human capital?
This economic principle explains why a society can't have everything it wants and must make choices.
What is scarcity?