What is Economics?
What are goods and services?
A good is tangible item that is economically useful or satisfies an economic want./ A service is a Work that is performed for someone.
What type of economy do we live in?
Free Market economy
Business owned by 1 person
Sole proprietorship
What happens when prices rise?
Demand goes down
What is supply?
The amount of a product that could be bought at all possible prices that could prevail in the market
What is scarcity?
When there is insufficient amount of something.
Economy that uses money for exchange.
Free market economy
What is it called when two or more companies combine?
A merger
What happens when prices drop?
Demand rises
What are fixed costs?
constant/ does not change
What are trade-offs?
Alternative choices
Government run economy
Command economy
What is a corporation?
a form of business recognized by law as a separate legal entity.
what happens if things get cheaper?
people buy more
What are variable costs?
Changes of cost which occur with changes in business
What is land?
Factor of production that includes natural resources not created by humans
Before civilization, what type of economic system was there?
Traditional economic system
A business people own that is part of a larger company?
A Franchise
Law of Demand
Prices go down, demand goes up.
Supply elasticity?
Measure of the way in which quantity supplied responds to a change in price
What is Human Capital?
The sum of the skills, abilities, health, knowledge, and motivation of people
What did humans traditionally trade?
Through bartering
Vertical merger
Business combination of firms involved in different steps of manufacturing or marketing.
What drives a free market economy?
Demand of consumers
What is a Marginal cost
Extra cost incurred when a business produces one additional unit of a product