Basics of Economics
The study of how individuals and society satisfy their unlimited wants with limited resources.
What is economics?
The economy of the United States.
What is a market system?
The lower the price the higher the demand, the higher the price the lower the demand.
What is the law of demand?
Things that are necessary for survival.
What is a need?
Land
Labor
Capital
Entrepreneurship
What are the four factors of production?
An economy based off tradition.
Traditional economy.
The least common form of business.
What is a Partnership?
An economic model that moves up and to the right
What is a supply curve?
Desires that can be satisfied by consuming a good or service.
What is a want?
What should be made ?
How do we make it ?
Who gets it?
What are the three basic questions to economics ?
A group usually a government, makes all decisions regarding the economy.
20 percent of all business, yet 90 percent of all sales.
What is a corporation?
Producers will produce more at a higher price and less at a lower price.
What is the law of supply?
All of the human effort to used to produce goods or services.
What is labor?
What else you could have done with your time, money, energy and resources.
A large variety of products, creativity and incentive. The people have a choice.
What is a market system?
Due to heavy competition, ____ of all businesses (sole proprietorships) fail within a year.
What is 2/3 of all of all sole proprietorships?
Demand
- the ability- the willingness to buy
- ____________
What is desire?
Involves the skill, vision and risk taking needed to create and run a company.
What is entrepreneurship?
The major problem of economics? (hint- resources)
What is we have unlimited wants with limited resources.
The government owns almost everything. Peoples income is regulated and only basic needs are met.
What is a command system?
What is a partnership?
If a producers can answer these questions, what can one infer?
What do you make?
What price should it be?
Where do we sell it?
What is producers understanding demand?
Capital
What is all of the resources made and used by people to produce goods and services?