what is economics
what is economics
the study of how people make choices with limited resources
what is a traditional economy
an economy where tradition guides decision
what is a sole proprietorship
a business owned and run by 1 person
what is demand
the quantity of a good consumers are willing and able to buy
what is supply
the quantity producers are willing and able to sell
what is scarcity
limited amounts of resources to meet unlimited wants
what is a command economy
An economy where the government makes most decisions
what is a partnership
a business owned by 2 or more people
what is the law of demand
the law stating that as price increases quantity demanded decreases
what is the law of supply
the law stating that as price increases quantity supplied increases
what is opportunity cost
the next best choice you give up when making a decision
what is a market economy
an economy based on private ownership and free markets
what is a corporation
a business owned by shareholders with limited liability
what is a demand curve
a graph showing the relationship between price and quantity demanded
what is a supply curve
a graph showing the relationship between price and quantity supplied
what is a production possibilities curve
model that shows trade offs between two choices
what is a mixed economy
most countries today use this type of system combining market and command elements
what is an LLC
a business structure combines features of corporations and partnerships
what is an increase in quantity demanded
this happens when consumers buy more because prices fall
what is an increase in quantity supplied
this happens when producers supply more due to higher prices
what are factors of production
resources used to create goods and services
what is the invisible hand
this concept describes individuals pursuing their own interests benefiting society
what is continuity of life
the ability of a business to continue existing after the owner leaves
what is a shift in demand
a change caused by factors like income or taste changing the entire curve
what is equillibrium
the point where quantity supplied equals quantity demanded