What is economics
What is microeconomics?
Study of individual economics
What is decision making?
The process of choosing between different options
What is a business owned and operated by one person called?
Sole proprietorship
Who creates demand in a market?
Consumers
Who provides supply in a market?
Producers
What is macroeconomics?
The study of the economy as group
What is an opportunity cost?
The value of the next-best alternative you give up when making a choice
What type of business is owned by two or more people who share profits and responsibilities?
Partnership
What is demand?
The willingness and ability of consumers to buy a good or service
What happens to supply when production becomes cheaper?
Usually increases
What can a business sell to make money?
Goods or services
What should you consider before making an important decision?
The costs and benefits of each option
What type of business organization is legally separate from its owners?
Corporation
Who creates demand in a market?
Consumers
What happens to supply when the government places a tax on producers?
Supply usually decreases
What is an economy in which individuals and businesses make most economic decisions?
Market economy
What does it mean to make a rational decision?
Choosing the option that provides the greatest benefit compared with its cost
What is one major advantage of a corporation?
Limited liability for its owners
Name TWO factors that can shift the demand curve
Income, tastes/preferences, trends, number of buyers, or prices of related goods
What is the difference between supply and demand?
Supply comes from producers, while demand comes from consumers
What can a business sell to make money?
Goods or services
What is marginal analysis?
Comparing the additional benefits and additional costs of a decision
What is a major disadvantage of a sole proprietorship?
The owner has unlimited liability
If the price of a substitute product increases, what will usually happen to demand for the original product?
It will increase
If the cost of raw materials increases, what will usually happen to supply?
It will go up