Types of Markets
The study of scarcity and how people use resources and respond to incentives
Economics
Limited resources while there may be unlimited want
Scarcity
Human made objects used to create
Physical capital
Deciding whether or not to add or subtract a unit based on whether it will be worth it
Thinking at the margin
The regulating force in a free market
Self regulating
The method a society uses to produce and distribute goods
Economic System
All natural resources used to produce goods and services.
Land
Knowledge or skills a worker gains through experience and or education
Human Capital
Graph that shows the other possible ways in which an economy's resources could be used.
Production possibilities curve
What is the governments role in our economic system
Provide information and promote public interest
Relatively small communities that do not change much. They rely on customs and resist change
Traditional Economy
The effort that a person puts into a task which they are paid for
Labor
Who owns the factors of production in a free market
Individuals and private business
Using resources in a way that maximizes the production or output of goods
Efficiency
The process used to produce goods and services
Technology
Decisions by individuals based on exchanges. They decide what gets made.
Market economy.
Any human made resources that are used to produce other goods and services
Capital
The United States desireable unemployment rate is
4-6%
The total value of all goods and services produced in an economy
GDP, Gross domestic product
A shared good or service
Public goods
Centrally planned economy, government alone makes all decisions.
Command economy
Leaders who decide how to pull together land, labor, and capital to create new goods and resources.
Entrepreneur
In recent years the U.S. has seen unemployment range from what to what?
3-11%
The alternatives that we give up when we choose one course of action over another
Trade offs
Economic side effect of a good or service providing cost to somebody other than the person who decides how much to produce or consume
Externality