Economic
What is the basic economic problem?
(Hint: Economic Needs)
The gap between unlimited wants and needs and limited economic resources is known as the basic economic problem.
Define Market Price
the point where supply and demand are equal.
Supply
the quantity of a good or service that businesses are willing and able to provide.
What are the six steps in the decision-making process?
1. Define the problem.
2. Identify the choices.
3. Evaluate the advantages and disadvantages of each choice.
4. Choose the best alternative.
5. Act on your choice.
6. Review your decision.
What are the main differences among command, traditional, and market economic systems?
In a market economy, the resources are owned and controlled by the people of the country.
Traditional economies are typically found in countries that are less developed and active in the global economy
Demand
the quantity of a good or service that consumers are willing and able to buy.
What is the main difference between a need and a want?
A need is something you need to live and a want is things that add comfort in your life.
Name the four principles on which the U.S. economic system is based.
Private Property
Freedom of Choice Profit Competition
Producer
an individual or organization that determines what products and services will be available for sale.
What is the difference between a good and a service?
Goods is something that you can see and touch and a service are activities provided for the satisfaction and consumption of others.
Define Economic Resources
things used to produce goods and services.
How is the market price for a product determined?
supply demand, and competition determine the market price for a product or service the market price is the point where supply and demand are equal.
What are the three types of economic resources?
Human Resources, Natural Resources and Economic resources
What are the three economic questions?
What goods and services will be produced?
How will the goods and services be produced?
Who decides what goods and services will be produced?
How does the price of a product affect demand and supply?
When the price goes up, demand usually decreases because fewer consumers are willing or able to buy the product.