Basic Economic Terms
The inability to satisfy everyone's wants because of limited resources
What is scarcity
The type of economy the U.S. has.
What is a mixed economy?
What is private property
Producers will make more when it can be sold for a higher price.
The three types of businesses
What are proprietorship, partnership, corporation
The type of economy that is based on custom and tradition
What is a traditional economy
Rivalry between producers that leads to lower prices and higher quality
What is competition
Consumers will buy more when the price of the product is low
What is the Law of Demand
The type of business where one person is the sole owner.
What is proprietorship
the process for creating goods and services
What is production
What is a command economy
The term applied to the fact that the government can make some decisions but not all decisions in the economy
What is limited government
On a supply and demand graph, this represents how much is made or how much is bought of a particular item.
What is quantity
The type of business where two or more people share in the risks and the profits.
What is a partnership?
what is given up when a choice is made; the second best alternative
What is opportunity cost
The type of economy in which there is little to no government involvement
What is a free market economy
These exist whenever there is a buyer and a seller
What are markets
The line on the supply and demand graph that always slopes down.
What is the demand line
The type of business where anyone who invests is considered an owner and shares in the profits
What is a corporation?
the types of resources
What is natural, human, capital, and entrepreneur
What is a mixed economy
Consumers determine through their purchases what the markets produce
What is consumer sovereignty
The line on the supply and demand graph that always slopes up
What is the supply line
A person who takes risks to produce a good and service for a profit.
What is an entrepreneur