Definitions
Things necessary for survival
What is a Need?
Examples include: video games, new vehicle, & jewelry
What is a Want?
The most common type of economic system in the world
What is Mixed?
What factor affects supply but not demand?
Number of sellers
Known for his communist views on economics; believed capitalism would destroy itself
What is Karl Marx?
The inputs used to produce a good or service
What are Factors of Production?
Examples include: fast food workers, teachers, farmers
What is Labor?
Economic system practiced by most communist governments
What is Command?
What law states that as price increases, quantity supplied increases?
Law of Supply
The father of modern economics; The Wealth of Nations
What is Adam Smith?
The value of the next best thing given up when making a decision
What is Opportunity Cost?
The basic problem that all economics systems deal with
What is Scarcity?
Economic system associated with laissez-faire
What is Free-Market?
Allocating resources to produce the maximum possible output
What is Efficiency?
Early economic philosophy in which countries exported more than they imported to accumulate gold and silver
What is Mercantilism?
A model that depicts that various combinations of goods and services a society can produce with available resources
What is Production Possibility Curve/Frontier?
What is an Entrepreneur?
Economic System often practiced by tribal groups
What is Traditional?
The point where demand and supply meet, and there is no surplus or shortage.
Market Equilibrium
Believed the population would outgrow food & would result in low standard of living
What is Thomas Malthus?
The satisfaction someone gets from consuming a good or service
What is Utility?
The questions: What to Produce? How to Produce? & For Whom to Produce? are what?
What are the 3 basic questions of every economy?
The U.S. follows this economic system
Making sure there is fairness in allocating resources
What is Equity?
Argued that the government needs to spend money to stabilize the economy