the inability to satisfy all wants at the same time. All resources and goods are limited. This requires that choices be made.
What is SCARCITY
100
factors of production that are used in the production of goods and services. (Natural, human, capital, entrepreneurship)
What are RESOURCES
100
Consist of earnings after all expenses have been paid
What is PROFIT
100
Economic decisions are based on custom and historical precedents.
People often perform the same type of work as their parents and grandparents regardless of ability or potential
What is TRADITIONAL ECONOMY
100
World Wide markets in which the buying and selling of goods and services by all nations take place
What is GLOBAL ECONOMY
200
amount of money exchanged for a good or service. Determined by interaction of supply and demand. Determines who acquires good and services.
What is PRICE
200
using of goods and services. Consumer preferences and price determine what is purchased and used
What is CONSUMPTION
200
Generally allowed to operate without undue interference from the government. Prices are determined by supply and demand as buyers and sellers interact in the marketplace.
What is MARKETS
200
Individuals are businesses are owners and decision makers for the private sector
Government is owner and decision maker for the public sector
Government's role is greater than in a free market economy and less than in a comand economy.
Most economies today, including the United States.
What is MIXED ECONOMY
200
A form of business organization with two or more owners who share the risks and the profits
What is PARTNERSHIP
300
selection of an item or action from a set of possible alternatives. Individuals must make decisions about desired goods and services because these goods and services are limited.
What is CHOICE
300
Determines price. Amount of a good or service taht consumers are willing to BUY at a certain price.
What is DEMAND
300
Individuals and businesses have the right to own real and personal space as well as the means of production without undue interference from the government
What is PRIVATE PROPERTY
300
private ownership of property/resources
profit motive
competition
consumer sovereignty
individual choice
minimal government involvement in the economy
What is FREE MARKET ECONOMY
300
A person who takes a risk to produce and sell goods and services in search of profit
What is ENTREPRENEUR
400
things that incite or motivate. Used to change economic behaviors
What are INCENTIVES
400
Determines Price. Amount of a good or service that producers are willing to SELL at a certain price.
What is SUPPLY
400
Rivarly between producers and/or between sellers of a good or service usually results in better quality goods and services at lower prices.
What is COMPETITION
400
Central Ownership (usually by government)of property/resouces
Centrally-planned economy
Lack of consumer choice
What is COMMAND ECONOMY
400
A form of business organization that is authorized by law to act as a legal entity regardless of the number of owners. Owners share the profits. Owner liablility is limited to the amount of their investment.
What is CORPORATION
500
what is given up when a choice is made-i.e the highest valued alternative is forgone. Individuals must consider the value of what is given up when make a choice
What is OPPORTUNITY COST
500
combining of human, natural, capital, and entrepreneurship resources to make goods or provide services. determined by resources available and consumer preferences.
What is PRODUCTION
500
Determined through purchases what good and services will be produced. Government involvement in the economy is limited. Most decisions regarding the production of goods and services are made in the private sector
What is CONSUMER SOVEREIGNTY
500
Government owns the means of producing goods and services.
People have no say in how their economy is run.
What is COMMUNISM
500
A form of business with one owner who takes all the risks and all the profits