Key Concepts
Economic Systems
Needs vs. Wants
Supply and Demand
4 Factors of Production
100

What is economics?

The study of how we use limited resources to fulfill unlimited needs and wants.
100

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.

100

Although resources are limited how much wants do people have?

Unlimited

100

Define Supply

Amount of goods a company is willing to make and sell.

100

What are natural resources?

Raw materials found in nature.

200

Define Scarcity

When we don't have enough resources to produce all of the things we would like to have.

200

Name four types of economic systems.

Traditional

Command

Market

Mixed

200
What is the difference between wants and needs?
Needs is something you can't live without while wants is something you desire.
200

Define Demand

Amount of goods consumers are willing and able to buy.

200

What are human resources?

Any person who is compensated for supplying skills or knowledge to help an organization achieve its business goals.

300
What are goods?

Goods are things that can be physically weighed and measured

300

What is a traditional market?

Tradition and custom govern decisions. Found in rural underdeveloped countries.

300

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

300

Define Surplus

It is when the supply is greater than the demand.

300

What is the definition of capital resources?

Things used to produce goods and services, like buildings, material and equipment.

400

What are services?

They are tasks that people or machines perform.

400

What is a command system?

It is a system in which a central authority such as the state makes the key economic decisions.

400

What is the concept of if the price supply is up and if the price is down the supply is down.

Law of Supply

400

Define Shortage

It is when the demand is greater than the supply

400

What are the factors of production (Definition)

The factors of production are components necessary to produce a society's goods/services.

500

What is a resource?

It is anything that people can use to make or obtain what they want or need. Also known as the factors of production.
500

What is a market economy?

System in which economic decisions are made in the marketplace according to the laws of supply and     demand.

500

What's the difference between public and private wants?

Private wants are what individual wants while public wants are what many people want. 

500

Define Equilibrium

It is when the supply and demand are equal.

500

What is an entrepreneurial resource?

It is the initiative to improve goods and services or create new ones.
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