Economic Problems
The problem of having unlimited wants but limited resources with which to satisfy them
what is basic economic problem?
The study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants
What is economics?
An ownership share or shares of ownership in a corporation
What is stock?
If someone does not have a job, has actively looked for work in the prior four weeks, and is currently available for work
What is unemployment?
The condition here unlimited human wants meet limited resources
What is scarcity?
Economic system in which the means of production are privately owned and operated for profit
What is capitalism?
Certificates of ownership of a portion of a debt that is due to be paid by a government or corporation to an individual; usually bearing a fixed rate of interest
What is bond?
The percentage of the labor force that is unemployed
What is unemployment rate?
An increase in the general price level.
What is inflation?
An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next--usually subsistence agriculture
What is traditional economy?
A stock that often pays no dividend, but the stockholder gains if the price of stock increases
What is growth stock?
Refers to the activities that workers undertake to find appropriate jobs
What is job search?
A situation where someone of working age is not able to get a job but would like to be in employment.
What is unemployment?
The highest-valued alternative that must be forgone when a choice is made
What is opportunity cost?
Things that are owned by individuals or businesses that can be converted into cash such as money in bank accounts, accounts receivable, land, buildings, fixtures and machinery
What is assets?
Include everyone in the general population with three exceptions: children under 16 years of age, people on active duty in the military, and institutionalized people, like those in nursing homes or jail
What is potential workers?
The unequal distribution of income and opportunity between different groups in society.
What is economic inequality?
The principle that suppliers will normally offer more for sale at high prices and less at lower prices
What is the law of supply?
The process through which companies obtain money to expand their business through stocks and bonds
What is capital formation?
Refers to unemployment that arises because workers have imperfect information about available jobs and need to engage in a time-consuming process of job search
What is frictional unemployment?