Economics
studies how people make choices with limited resources
What is economics?
what 3 questions do the different business economies answer?
-how to produce
-what to produce
-for whom to produce
a general increase in prices over time reducing the purchasing power of money
what is inflation?
demand exceeds supply
what is shortage?
which economic system has the government make all economic decisions and has resources controlled by the state?
What is a command economy?
demand pull inflation
what is demand exceeds goods?
describes the relations of somethings abundance and demand for that product
what is supply and demand?
what economic system has all production owned collectively and promotes equality?
what is socialism?
cost push inflation
what is productions cost rise?
supply and demand are equal
what is equilibrium?
waht economic system is an extreme version of socialism?
what is communism?
built in inflation
What is workers demand higher wages increasing inflation?
cost value of the next best alternative
what is oppurtunity cost?
what economic system is based on customs belief and history?
What is a traditional economy?
what are three negatives of inflation?
-increased cost
-pricing challenges
-reduced consumer spending
-borrowing and investments
-uncertainty