what is economics?
What are the two main branches of economics?
Microeconomics and Macroeconomics
What is an economic system?
An economic system is the structure and methods by which a society allocates its resources and distributes goods and services
What is a business organization?
A business organization is a structured entity formed to conduct commercial activities.
What is demand?
Demand refers to the quantity of a good or service that consumers are willing to purchase at different prices during a given period.
What is supply?
Supply refers to the quantity of a good or service that producers are willing and able to sell at various prices during a given period.
What is scarcity?
Scarcity refers to the basic economic problem that rises because resources are limited while human wants are unlimited.
What are the main types of economic systems?
Market Economy, Command Economy, and Mixed Economy.
What are the main types of business organizations?
Sole Proprietorship, Partnership, and Corporation.
What is the law of demand?
As the price of a good decreases, the quantity demanded increase and as the price increases, the quantity demanded decreases.
What is a supply curve?
A supply curve is a graphical representation of the relationship between the price of a good and the quantity supplied
What are opportunity costs?
Opportunity cost is the value of the next best alternative that is foregone when a choice is made.
How does a mixed economy function?
A mixed economy incorporates elements of both market and command economies.
How do partnerships work?
In a partnership two or more individuals share ownership and management responsibilities.
What is elastic demand?
Elastic demand occurs when the quantity demanded changes significantly with a change in price.
What is elastic supply?
Elastic supply occurs when the quantity supplied changes significantly in response to a change in price.
How do supply and demand work?
Supply and demand are fundamental concepts in economics. The law of demand states that as prices decrease the quantity demanded increases.
What role does government play in different economic systems?
In a market economy, in a command economy, and in a mixed economy.
What is limited liability?
Limited liability means that the owners of a business are only liable for the company's debts up to the amount they have invested.
What is inelastic demand?
Inelastic demand occurs when the quantity demanded changes very little with a change in price.
What is market equilibrium?
Market equilibrium occurs when the quantity supplied equals the quantity demanded at a particular price.
What are market failures?
Market failures occur when the allocation of goods and services by a free market is not efficient.
What is capitalism?
Capitalism is an economic system characterized by private ownership.
What is a nonprofit organization?
A nonprofit organization is an entity formed for purposes other than generating profit, typically focused on charitable, or educational.
What is unitary elastic demand?
Unitary elastic demand is when the percentage change in quantity demanded is exactly equal to the percentage change in price.
What factors influence supply?
Technology, Production costs, and Number of sellers.