Foundational Concepts
The condition that requires making choices and prioritizing needs because resources are limited.
What is scarcity?
The relationship where an increase in price causes the quantity demanded to decrease.
What is the Law of Demand?
The organizing principle driven by efficiency and innovation, addressing consumer needs and preferences.
What is a market economy?
The concept of using this curve to visually analyze trade-offs and opportunity costs.
What is the Production Possibilities Curve (PPC)?
The key indicators like GDP used to measure the overall health and performance of an economy.
What are indicators of economic growth?
Identifying and evaluating this concept is crucial when analyzing decision-making processes in economics.
What are opportunity costs?
The market condition where supply and demand are not equal, usually caused by a shift in one of the curves.
What is disequilibrium?
This shows the continuous interaction and flow of income and goods between households and businesses.
What is the Circular Flow Model of Income?
The collective term for land, labor, capital, and entrepreneurship.
What are the factors of production?
The market that determines wages and working conditions, often influenced by unions.
What is the labor market?
Studying how different types of these impact behavior and influence economic decisions and outcomes.
What are incentives?
This is determined where the quantity supplied equals the quantity demanded.
What is market equilibrium?
The broad concept covering systems like capitalism and socialism that organize economic activity and resource distribution.
What are economic systems?
The human resource that contributes to production; its quantity affects market supply and demand.
What is labor?
The analysis of how international agreements and trade policies impact economic development.
What is international trade?
The essential concept that forces the need for choices due to resource limitations.
What is scarcity?
Factors like consumer income or tastes that can influence changes in demand for goods and services
What are demand shifters (or factors that influence demand)?
Comparing and contrasting the strengths and weaknesses of various economic systems.
What are key differences in economic systems?
Understanding the legal and financial considerations required when beginning a company.
What is forming a business?
The analysis of how the demand for and supply of workers affect wage rates in the job market.
What is the supply and demand of labor?
This is the cost you incur by choosing one option over the next best alternative.
What is opportunity cost?
The principle that states higher prices prompt producers to supply more of a good.
What is the Law of Supply?
The specific advantages of market economies, such as efficiency and satisfying consumer preferences.
What are the benefits of market economies?
The term for the process of setting up a business, which includes defining the business's structure.
What is business formation (or type of businesses)?
The groups that influence wages, working conditions, and employment within the labor market.
What are labor unions?