Economics 101
The science that studies the choices of people trying to satisfy their wants in a world of scarcity
Economics
Land, labor, capital, technology, and entrepreneurship are considered this.
Factors of Production
An economic system in which individuals, NOT the government, owns and controls the factors of production.
free enterprise (also referred to as free market, capitalism, and free market capitalism)
It's a good that is owned by an individual or business. Your cell phone and backpack are examples.
private property
It's a loan that is used specifically for real estate, such as land, a house, or a building.
mortgage
This is the root cause of all economic problems. It is also the condition in which our wants are greater than the resources to available to satisfy them.
Scarcity
It's the physical work that people do.
Labor (Labor is the American spelling. Labour is the British spelling.)
An economic system in which the government controls and may own many of the resources. Cuba & North Korea are examples.
socialism (also referred to as communism, from the American perspective)
It's a good that is owned by the government or paid for with public tax dollars. Examples are public schools, traffic signals, libraries, and public parks.
public goods (or public property)
You have to pay the bank additional money if you take out a loan.
interest
These are needed to produce goods & services that satisfy our wants. This word begins with the letter "R."
Resources
It's things such as equipment, machines, and factories that are needed to produce goods. It starts with the letter "C."
An economy that is neither purely capitalist nor purely socialist. Instead, it has elements of both.
mixed-market economy
It's the amount of money left over after all the costs of production have been paid.
profit
It's a card that is linked to a bank account. You have to have money in your account for the card to work.
debit card
It is the branch of economics that deals with human behavior & choices as they relate to relatively SMALL UNITS, such as personal finance and businesses.
Microeconomics
It's the natural resources found in nature. Examples are fish swimming in the Gulf of Mexico, trees growing in Pennsylvania, or coal that is mined in West Virginia.
He was born in Scotland and believed in free enterprise capitalism. He believed that the government should NOT get involved with economic matters.
Adam Smith
It's when the total cost exceeds total revenue.
loss
It is a card that you can use to buy something. You don't have to have money in a bank account. However, you will have to pay the money back next month. If you don't pay the balance in full, you will pay interest.
credit card
It is the branch of economics that deals with the ENTIRE ECONOMY and BILLIONS of dollars.
Macroeconomics
It is someone who starts their own business.
He was born in Germany and favored socialism and communism.
Karl Marx
It's an agreement between two or more people to do something.
contract
It is the money you earn from a job.
income