Vocab
These factors determine price in a market economy
What are supply and demand?
The reason that we must make choices
What is scarcity of resources, goods, and services?
In this economic system if your father was a farmer, you would also be a farmer.
What is a traditional economy?
The money a business has left over after all expenses have been paid.
What is profit?
The type of economic system a country has is determined by this
What is amount of government involvement?
Things that are designed to excite and motivate the consumer and change economic behavior – like a coupon or a sale!
What are incentives?
What are the 4 types of resources (factors of production) used to make goods and services?
What are entrepreneurship, Natural, labor, and capital?
The U.S. has this type of economy
What is mixed?
Markets are allowed to operate without undue interference from the government.
What is free market?
A lack of consumer choice describes this type of economy
What is command economy?
A toaster and an oven at a bagel shop is this type of resource.
What is capital?
This determines what will be produced
What are..
Resources available
Consumer preferences?
This system has individual choice, competition, and consumer sovereignty
What is free market?
Rivalry between businesses for the same customers.
What is competition?
The two types of economies that follow the decisions of the consumer as to what to produce
What are free market and mixed?
When the supply of a product is high and the demand is low, this happens to the price
What is decrease?
The three basic questions of economics that every type of economy must answer
What are..
What will be produced
Who will produce it
For whom will it be produced?
In a command economy there is central ownership of all property and resources. That means the property and resources are owned by this.
What is the government?
Individually owned means of production and property
What is private property?
True or False?
Mixed economies have some government control
What is a true?
Vacation or new car? You chose the new car. The vacation is this.
What is opportunity cost?
This determines what is consumed
What are consumer preferences and price?
In a mixed economy, the government owns the property and resources in the public sector. The property and resources in the private sector of a mixed economy are owned by this.
What are individuals and businesses?
Consumers determine what goods and services are produced by what they buy.
What is consumer sovereignty?
The consumers rule by making the consumption decisions in the economy. This means producers will only make the products consumers are willing to buy.
What is consumer sovereignty?