What is Economics
The difference between wants and needs
Wants are desires for goods and services we would like to have but do not need. Needs are a special kind of want, and refer to things we must have to survive, such as food, water, and shelter.
What is capitalism
Economic system which private citizens own factors of production
Merger is
What is demand
the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
Fixed cost is
cost that a business incurs even if there is little or no activity
Factor market is
Where factors of production are bought and sold
Economic freedom is
The freedom to choose career, employer, job location, and ability to move to different jobs
What is growth through mergers
two or more companies joining together legally
Demand curve is
graph showing the quantity demanded at each and every price given at a given time
Marginal Cost is
Extra cost incurred when a business produces one additional unit of a product
Factors of productions in Economics include
Land, capital, labor, entrepreneurs, production, decision-making
Private property rights is
When people are allowed to purchase, own, and sell property as they wish
Sole proprietorship is a
Business owned and ran by one person
Elastic demand is
one in which the change in quantity demanded due to a change in price is large
Diminishing returns is
stage where output increases at a decreasing rate as more units of a variable are added
Gross domestic product is
The dollar value of all final goods, services, and structures produced within a country's border
Traditional economies advantages and disadvantages are
Little uncertainly; role playing is clearly identified and no need for develpoment
Nonprofit organizations
economic institution that works in a businesslike manner but does not seek financial gain
Inelastic demand is
one in which the change in quantity demanded due to a change in price is small.
Marginal product is
The extra output or change in total product caused by the addition of one more unit of variable input
What are the 3 types of goods in Economics
Consumer goods, durable goods, and nondurable goods
Why is economic security neccessary
It is necessary for insurance plans, social security, and medicare
What are the growths through mergers
horizontal and vertical mergers
Diminishing Marginal Utility is
The decrease in satisfaction or usefulness received from each additional unit of a product
Subsidy is
A government payment to an individual, business, or other group to encourage or protect a certain type of economic activity