Needs and Wants
Things required to live, like food and shelter
What are needs?
This type of economy is controlled entirely by the government
What is a command economy?
What consumers decide when purchasing products
What is demand?
The economic problem of limited resources
What is scarcity?
The type of economic items you can touch and see
What are goods?
The economic system where individuals make most economic decisions
What is a market economy?
What producers establish when creating goods and services
What is supply?
The first step in the economic decision-making process
What is defining the problem?
Examples of these add comfort to life beyond basic survival
What are wants?
The three key economic questions every system must answer
What goods/services will be produced? How will they be produced? What needs/wants will be satisfied?
How price impacts consumer willingness to buy
What is that as prices decrease, demand increases?
the value of the next best alternative you didn't choose
What is opportunity cost?
The three types of economic resources
What are natural, human, and capital resources?
: The U.S. economic system based on private ownership
What is capitalism?
The point where supply and demand are equal
What is market price?
The five steps in the decision-making process
Define problem, identify choices, evaluate advantages/disadvantages, choose best alternative, act on choice, review decision?
The key difference between needs and wants
needs are essential for survival, while wants add quality to life?
Examples of mixed economy countries
What are Iceland, Sweden, France, and the UK?
Factors that influence product demand
What are price, season, and next best alternatives?
How do trade-offs relate to economic choices
What is that trade-offs force us to make choices due to limited resources?