Economics 1
Refers to the economic problem of having limited resources with unlimited wants
scarcity
Things that people must have to survive
needs
Things that people would like to have but can live without
wants
were the alternative choices that you give up in favor of the choice you made.
trade-offs
how much the public wants/needs it. .
demand
Someone who buys goods and services
consumer
Actions done for others in exchange for payment
services
Tangible items that people consume or use
goods
is an individual who searches for profit in a new field with existing resources.
an entrepreneur
This measures the total income of every person and the total spending on the outcomes of goods and services.
GDP
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
economics
the study of how consumers, workers, and firms interact to generate outcomes at the individual and business levels.
Microeconomics
The effort people contribute to the production of goods and services
What is labour
It includes skills, knowledge, and time people use to produce something.
labor.
The use of government spending and taxation to influence the economy.
fiscal policy
the study of production, employment, prices, and policies on a national scale.
Macroeconomics
the idea that the demand for a good or service is higher than what is available
Scarcity
When an organization concentrates its labor and resources on a particular good or service
Specialization
it shows how much the country is producing and how well the economy is doing.
GDP (gross domestic product)
Land, Labor, Capital, Entrepreneurs
factors of production
Economics is often associated with wealth and finance, but it is not all about money.
Social science
the cost of the next best alternative us of money, time, and resources when one choice is made over another.
opportunity cost?
occurs between individuals, businesses, and governments because we cannot efficiently produce everything we need by ourselves
Trade
the amount of goods available
supply
The control of the money supply and interest rates to influence the economy
monetary policy