Fundamentals
the study of how people try to satisfy unlimited wants through the use of scarce resources
Economics
What are the 4 factors of production?
Land, Labor, Capital, Entrepreneurs
goods and services that are useful, relatively scarce, and transferable to others
economic products
a worth that can be expressed in dollars and cents
value
a market condition which stock prices are expected to rise
Bull Market
the condition of society not having enough resources to produce all the things people would like to have
Scarcity
includes the “gifts of nature,” or natural resources not created by human effort.
Land
an item that is economically useful or satisfies an economic want,
a good
the capacity to be useful and provide satisfaction.
utility
a market condition which stock prices are expected to fall
Bear Market
a way of expressing a need
a want
includes the tools, equipment, and factories used in production.
Capital
work that is performed for someone.
a service
the accumulation of those products that are tangible, scarce, useful, and transferable from one person to another.
wealth
a collection of markets and exchanges where stocks, or shares of ownership in public companies, are bought and sold.
Stock Market
a basic requirement for survival and includes food, clothing, and shelter
a need
includes people with all their efforts and abilities.
Labor
a person who uses goods and services to satisfy wants and needs
consumer
the cost of the next best alternative use of money, time, or resources
opportunity costs
the capital raised by a business or corporation through the issue and subscription of shares
stock
what are the 3 basic questions?
WHAT to produce
HOW to produce it
FOR WHOM to produce it for
individuals who start a new business or bring a product to market.
Entrepreneurs
the dollar value of all final goods and services, and structures produced within a country’s borders in a 12-month period
Gross Domestic Product (GDP)
a way of thinking about a problem that compares the costs of an action to the benefits received
cost-benefit analysis
a debt instrument where an investor loans money to an entity for a set period in exchange for regular interest payments and the return of the principal amount at maturity
bond