Economics
What are two forms of economics?
Macroeconomics, and Microeconomics
What are the four factors of production?
Land, Labor, Capital, and Entrepreneurship
What is scarcity?
Scarcity develops when demand is higher than the available resources.
What is a system?
A system is a way to manage, control, or organize something that follows a set of rules.
What is a market force?
Market Forces are economic factors that affect the price, demand, and availabilty of the product.
What does the prefix micro mean?
Micro means small.
What does land include?
Land includes all of the nations natural resources.
What is a trade-off?
A trade-off is when something is given up in order to gain something else.
What are the 4 economic systems?
Traditional, Command, Market, and Mixed
What is an equilibrium?
Equilibrium is the point at which the supply equals demand.
What is economics?
Economics is a science that examines how goods and services are produced, sold, and used.
What is labor?
Labor is the work performed by people in buisnesses.
What is opportunity cost?
Opportunity Cost is the value of the next-best option that was not selected.
What are the three economic questions?
What should we produce?
How should we produce it?
From whom should it be produced?
What is the price that determines an equilibrium?
Market price
What is macroeconomics?
Macroeconomics is the branch of economics that studies human behavior and choices that relate to the entire economy of a nation.
What is capital?
Capital is all the tools provided and machinery used to produce goods and services.
What do people make economic decisions based on?
Individuals make economic decisions based on what is the most valuable.
What are economic inputs?
Economic inputs included the resources used to make products.
What is a powerful market force?
Profit motive
What is microeconomics?
Microeconomics is the branch of economics that studies human behavior and choices.
What is entrepreneurship?
Entrepreneurship is the willingness and ability to start a new buisness.
How many steps are in the decision making process?
5
What are economic outputs?
Economic output is all the goods produced by an economic system.
What is an important factor in free-enterprise?
Competition