what is economics
what is economics?
The study of how people use limited resources to satisfy unlimited wants
What is a command economy?
An economy where the government makes most decisions
What is a sole proprietorship?
A business owned by one person
What is demand?
The desire and ability to buy a product
What is supply?
The amount of goods producers are willing to sell
What are factors of production?
Resources used to make goods and services.
What is a traditional economy?
An economy based on tradition and customs
What is a partnership?
A business owned by two or more people
What is the law of demand?
The law that states as price increases, quantity demanded decreases
What is the law of supply?
The law stating that as price increases, quantity supplied increases
What is scarcity?
The basic problem caused by limited resources and unlimited wants
What is a market economy?
An economy with little government involvement and free markets
What is a corporation?
A business owned by shareholders
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 opportunity cost?
The next best alternative you give up when making a choice
What is a mixed economy?
A system that combines elements of command and market economies
What is transferability of ownership?
The ability to easily transfer ownership in a corporation
What is a demand shifter?
A factor that can shift demand, like income or tastes
What is a supply shifter?
A factor that shifts supply, like cost of production
What is a trade-off?
A situation where both sides benefit in a decision or exchange
What is a mixed economy?
The economic system used in the United States
What is limited liability?
When owners are not personally responsible for business debts
What is an increase in demand?
When demand increases due to higher income for normal goods
What is a decrease in supply?
When supply decreases due to higher production costs