Markets
1 seller in the market, products are unique with no substitutes
What is a monopoly?
individuals and societies must make choices about how to use limited resources with unlimited wants
what is scarcity
land, labor, capital, and entrepreneurship
What is the resource market?
Based on customs, traditions, and historical practices
What is Traditional Economy?
Higher the price of a good less the people want it
What is the Law of Demand?
Many buyers and seller, products are identical
What is Perfect Competition?
To serve as a store of value, To act as a medium of exchange, To measure the value of goods and services
What is money?
Skills a worker gains through education, training, or experience that is used to produce goods & services
What is human capital?
Government makes all the decisions
What is a Command Economy?
Higher the price of the good, larger the quantity is produced
What is the Law of Supply?
few sellers control the market
What is oligopoly?
helps us make better financial decisions by making us understand our choices
what is economics?
They provide factors of production and consume goods
What role do households play?
Driven by supply and demand with little government intervention
What is a Market Economy?
goods that can be used in place of another
What are substitutes?
Many sellers, and products are differentiated
What is monopolistic competition?
The value of the next best alternative given up
Opportunity costs - trade offs
Firms, Households, resource market, product market, and governments
What are the parts of the circular flow model?
Government regulations alongside free markets
What is a Mixed Economy?
stops people/ business from entering the market
What are barriers of entry?
when one country can produce a good at a lower opportunity cost than another country
What is comparative advantage?
buy resources and sell products
What are firm/ businesses?
The community determines and regulates the means of production, distribution, and exchange
What is socialism?
Describes the point at which quantity supplied equals quantity demanded in a market