The Basics_
The basic economic problem that arises because people have unlimited wants but resources are limited. Because of it, various economic decisions must be made to allocate resources efficiently.
scarcity
type of security that gives a person a share of ownership in a company.
Stocks
What do we call the economy where the 3 basic economic questions are addressed according to custom (or the way things have always been done).
a traditional economy
The willingness and ability to purchase goods and services at particular prices.
demand
What is the primary reason for a company to issue stock?
To raise money to grow the company
the benefits you could have received by taking an alternative action.
opportunity cost
where traders buy and sell shares of companies on a public exchange.
Stock market
The 3 most basic economic questions a community, society, or nation must answer.
1. What to produce?
2. How to produce?
3. For whom to produce?
The willingness and ability to produce goods and to provide services at particular prices.
supply
How do you satisfy your unlimited wants in a world of limited resources?
by making choices
The process by which economic resources get assigned to their particular uses for directly or indirectly satisfying human wants.
Allocation of resources
The act of committing money with the expectation of achieving a profit by putting it into shares or property
Investing/Investment
What do we call Land, water, and fossil fuels?
natural resources
things that people desire to have
Wants
If the supply of the good goes up, what happens to the market price?
Fall
A person who buys goods and services
Consumer
Name one of the major stock exchanges in the United States.
the New York Stock Exchange/NASDAQ/DOW
The 3 basic economic questions are addressed by buyers (consumers) and sellers (producers) alone
free market economy
the science that studies the choices of people trying to satisfy their wants in a world of scarcity
Economics
Owning a share of stock means
you own a part of a company
If there are 25 students that need a social studies textbook, but the teacher only has 20, this is an example of what?
Scarcity
The process of offering shares in a private corporation to the public for the first time.
IPO (initial public offering)
system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using money
Barter system
the market price where the quantity of goods supplied is equal to the quantity of goods demanded.
equilibrium price
What do we call a company owned by families or a small number of investors and do not issue stock to the public?
private company