Scarcity, Choice, Resource
Choice involves three thoughts in making economic decision based on a society's issue
What are basic economic questions: what to produce?, for whom to produce?, and how to produce the goods/services?
Companies are motived to make profit and income is paid to owners and laborers from the income of the companies/business.
What is free market?
factors of production: land, labor, capital, entrepreneurship called by
What are the firms (businesses)?
wrote The Wealth of Nations
Who was Adam Smith?
process created to manage production, consumption, and distribution of goods and services
What is an economic system?
during this covid pandemic toilet paper has been of limited supply, even expensive to buy at times
What is Scarce?
Examples of societies that operate economies that are mostly characteristic of free enterprise include
What are United States, Hong Kong, Singapore, New Zealand, Switzerland, Australia, Ireland, Estonia, United Kingdom, Canada, United Arab Emirates?
What is factor market?
attacked communist control economies, wrote The Fatal Conceit: The Errors of Socialism
Who was Friedrich Hayek?
another name for a product, like a car
What are goods?
the act of giving up something, but getting something else in return is...
What is opportunity cost?
is distinguished by state ownership of the factors of production along with central planning to distribute goods and services and to assign where people will work. Communism is very similar to socialism. China, Cuba, Laos, North Korea, and Vietnam are countries most often associated with
What is Communism?
The households consuming and spending at a mall
What is the product market?
individual that believed in money supply growth happens as economy would grow
Who was Milton Friedman?
limited natural resource within an area
What is Scarcity?
What is buying shoes in product market, payment of shoes is revenue for the firm (business)?
is collective ownership of the factors of production by everyone in society. Ownership may be made through elected governmental entities or through public corporations.
What is Socialism?
In the factor market side, labor, land, capital are demanded
What are the households?
individual who wanted people to spend $, to allow government $ to continue; gov.'t involvement during economic depressions
Wo was John Maynard Keynes?
system that involves economic freedom for both consumers and producers
What is free enterprise system?
In America it is hard to believe people suffering from hunger; the government has stepped in to provide food pantries for people in need with rationing among the people
What are shortage of resources?
the factors of production are owned privately. Goods and services are distributed based on supply and demand
What is a free enterprise system?
a visual representation showing relationship between factor market and product market
What is the circular flow model?
individual who created idea based on the invisible hand giving self-interests and freedom of production
Who was Adam Smith?
land, labor, entrepreneurship, and capital are resources needed to produce goods/services
What are the factors of production?