Terminology
Unlimited wants and limited resources.
Scarcity
Based on Traditions and customs
Traditional Econ System
Tropical Smoothie Employee
Labor
Amount of goods desired by consumers
Demand
Buying a slurpee instead of a big gulp. What is this an example of?
Opportunity Cost
Value of the best alternative given up
Opportunity Cost
Refers to how resources are used and who gets something when its available
Allocation
Pizza Oven
Capital
Has a negative slope because as price increases, quantity demanded decreases
Demand Curve
Who handles all aspects of production in a command economy?
The government
Studying the decision making of an economy as a whole (globally)
Macroeconomics
Governments plays a key role in planning and deicision making-consumers have little influence
Command
Cattle
Land/Natural
Amount of goods made available by producers
Supply
An individual who starts a business described which term?
Entrepreneurship
Reason we make a choice and what encourages us to take action
Incentive
Called welfare states because there are government programs
Socialism
Currency
Capital
Price at which the quantity of goods supplied equals the quantity of goods demanded.
Equilibruim or market price
When demand exceeds supply, the results is typically__.
A shortage
Degree to which demand is effected by price
Demand Elasticity
Prices are controlled by supply and demand
Market Economy
Another term for Factors of Production
Economic Resources
When demand for a product is not affected by price
Bad Choice