Intro Intro
The study of how people use their resources to satisfy their needs and wants.
Economics
# of principles
7
Natural resources
Land
Central government control
Command
Demand
Want and ability to pay for something
The system in which goods and services are produced and exchanged.
Doing something because it's a greater benefit to you
Costs vs Benefits
Human input
labor
Lack of government control
Market
What's on the market
Supply
Everything is this.
Scarce
I can buy all the expensive things I've ever wanted.
Freedom
The machines are here
Capital
Elements of command and market
Mixed
Laws of supply & demand
Demand: price up, demand down
Supply: price up, supply up
Second best choice. What I didn't pick.
Opportunity cost.
Maximize output, minimize waste
Efficiency
The boss
Enterprise / Entrepreneurship
Trade and barter
Traditional
True or false: price change shifts the entire demand or supply curve
False
Deciding between 2 things? You may have to make this.
Trade off
3 questions of economics
What to produce? How to produce? For whom to produce?
Free 500 points
Free 500 points
Nomadic
Traditional
Equilibrium
Where quantity demanded and supplied are equal