Key Concepts
What is economics?
What is an economic system?
The survival of any society depends on its ability to provide food, clothing, and shelter for its people. Because these societies face scarcity, decisions concerning What, how, and for whom to produce must be made.
Although resources are limited how much wants do people have?
Unlimited
Define Supply
Amount of goods a company is willing to make and sell.
What are natural resources?
Raw materials found in nature.
Define Scarcity
When we don't have enough resources to produce all of the things we would like to have.
Name four types of economic systems.
Traditional
Command
Market
Mixed
Define Demand
Amount of goods consumers are willing and able to buy.
What are human resources?
Any person who is compensated for supplying skills or knowledge to help an organization achieve its business goals.
Goods are things that can be physically weighed and measured
What is a traditional market?
Tradition and custom govern decisions. Found in rural underdeveloped countries.
What is the concept of when the price goes up and the demand goes down, and if the price goes down demand goes up.
Law of Demand
Define Surplus
It is when the supply is greater than the demand.
What is the definition of capital resources?
Things used to produce goods and services, like buildings, material and equipment.
What are services?
They are tasks that people or machines perform.
What is a command system?
It is a system in which a central authority such as the state makes the key economic decisions.
What is the concept of if the price supply is up and if the price is down the supply is down.
Law of Supply
Define Shortage
It is when the demand is greater than the supply
What are the factors of production (Definition)
The factors of production are components necessary to produce a society's goods/services.
What is a resource?
What is a market economy?
System in which economic decisions are made in the marketplace according to the laws of supply and demand.
What's the difference between public and private wants?
Private wants are what individual wants while public wants are what many people want.
Define Equilibrium
It is when the supply and demand are equal.
What is an entrepreneurial resource?