Basic Economics
The limited availability of resources compared to unlimited demand.
what is scarcity?
This is a place where buyers and sellers can buy exchange and sell goods.
what is market?
a place where people can keep money and earn interest.
what is a bank?
the system where government makes all economic decisions.
what is command economy?
someone who buys and uses goods and services.
what is a consumer?
this is deciding between 2 alternatives and choosing the best one.
what is choice?
This is the rivalry between businesses to get customers.
what is competition?
This is money paid for the use of borrowed money.
what is interest?
When goverment owns factories, farms, and businesses.
what is communism?
Someone who starts a new business with a new idea.
what is an entrepreneur?
This is the cost of the next best option you give up.
what is opportunity cost?
The system where individuals own businesses and make decisions freely.
what is free market?
The paper money and coins used in a country.
what is currency?
Government agencies that regulate business behavior.
what are regulatory agencies?
Something that motivates people or businesses to act.
what is an incentive?
The relationship between how much of a product is available and how much people want it.
what is supply and demand?
what is a proprietorship?
The rise of prices over time.
what is inflation?
The idea that government should interfere very little in the economy.
what is the free market system?
The goal of making money in a business.
what is profit motive?
This is the process of turning resources into goods and services.
what is production?
The resources used to produce goods, like factories and tools.
what are the means of production?
The money available in an economy.
what is money supply?
The tax on income earned by businesses and people.
what is income tax?
The idea that buyers decide what is produced.
what is consumer sovereignty?