Systems of "What, How and Whom?"
Farmers focus on harvesting and tending on their own with little to no surplus.
What is Subsistence Farming?
A profit-seeker who develops a new product or process, and assumes the risk of profit or loss.
What is an entrepreneur?
a condition facing all societies because there are not enough productive resources to satisfy people"s unlimited wants.
What is Scarcity?
The formula for profit.
What is Revenue minus Cost of Production?
It is rival and non-exclusive.
What is Open-Access Goods?
This type of economy is known for the government regulating market forces while allowing private firms to form.
What is Mixed Market?
A computer engineer decides to obtain advanced certifications, and to focus on specializing in cloud architecture.
What is Human Capital?
Giving up an evening of pizza and conversation with friends to work on a term paper.
What is Opportunity cost?
A household's satisfaction, happiness, or sense of well-being.
What is utility?
Examples include street lighting, City parks, and national defense.
What is Public Goods?
Monopolies are always a potential risk with this system.
What is Market Economy?
"Gifts of Nature" used to produce goods and services; includes physical space, soil, and natural resources.
What is Land?
Clothing, books, and computers. Consulting, fitness training, and landscaping.
What is Goods and Services?
Involves the exchange of goods & services, and capital across national borders.
By-products of Production or consumption that benefit third parties.
What is Positive Externality?
Centralized planning, setting production quotas, and a focus on collective goals.
What is Command Economy?
The physical and mental effort used to produce goods and services.
What is Labor?
A factory with the capacity to produce 100 units of product A and 100 units of product B. It is producing 30 units of A and 20 units of B.
What is a point inside the PPF curve? What is underutilizing resources?
This economic decision maker has played a major role in transitioning the U.S. economy from traditional to mixed market by focusing on utility.
What is households?
Second-hand smoke causes issues for non-smokers.
What is Negative Externality?
This system typically has significant income inequality, high innovation and consumer sovereignty.
What is Market Economy?
Governments offer tax breaks to companies that relocate to a specific area to boost local job creation.
What is Incentives?
A factory with the capacity to produce 100 units of product A and 100 units of product B. It is producing 100 units of A and 0 units of B.
What is a point all the way to the left of the curve? What is maximizing point A?
Examples include factories, mills, offices, stores, and restaurants.
What is firms?
The Grand Banks and fishery collapse (1960s - 1990s) was when individual fishing boats, acting in their self-interest, maximized their catch of cod resulting in the fishery to collapse due to the depleted population of fish.
What is Tragedy of the Commons?