Micro
The study of how people, businesses, and governments make choices about how to use limited resources to satisfy unlimited wants and needs.
Economics
A decision is made between different options because resources are limited.
Choices
An economy in which economic decisions are based largely on customs, traditions, and ways of life passed down through generations.
Traditional
Goods that can be replaced
Substitues
As price increase, quantity of supplied generally increases.
Law of supply
The study of how individuals, households, and businesses make decisions when resources are scarce.
Microeconomics
The next-best alternative you give up when you make a choice.
Opportunity Cost
An economy in which the government makes major decisions about resource allocation and production.
Command
Where buyers and sellers interact to exchange goods and services
Market
The market needs to find a price where the amount buyers want to buy matches the amount sellers want to sell.
Equilibrium
What are the factors of production?
Land, Labor, Capital, and Entrepreneurship
Something that encourages or motivates a person or business to make a certain choice.
Incentive
A country that is considered mixed because it combines private business with government regulation and support.
USA
Higher Price → Less Bought
Lower Price → More Bought
Law of Demand
The amount of a good or service that producers are willing and able to sell at different prices
Supply
The physical and mental work people do to produce goods and services. (FoP)
Labor
Something that discourages you from making a certain choice.
Incentive
Market decisions made by individuals and businesses with government involvement.
Mixed
How much of a good or service consumers are willing and able to buy at different prices.
Demand
What happens above the equilibrium?
Surplus
A person who studies how people, businesses, and governments make choices about limited resources.
Economist
Everything you give up when you make a choice.
Trade-Off
An economy where individuals and businesses make economic decisions through buying, selling, and competition.
Market
5 major factors of demand shift
What happens below the equilibrium?
What is shortage