Thinking Like an economist
Fundamental problem all society faces
What is scarcity
Meeting place in buyers and sellers come together to determine price
Market
Work or labor performed for someone
What is a Service
Good intended to last longer than three years
Durable good
ECONOMIC SYSTEM IN WHICH THE GOVERNMENT HAS ALL THE CONTROL
Command Economy
Cost of the next best alternative
Opportunity Cost
Three fundamental questions
What to produce
how to produce
for whom
Market In which goods and services are bought and sold
Product market
The highest legal price that can be charged
Price Ceiling
Land, Capital, Labor, Entrepreneurs
Factors of production
Markets in which productive resources are bought and sold
Factor Market
Moneyless economy that relys on trade
Number of unemployed divided by civilian work force
Unemployment rate
Factor market, Product Market, Individuals and business all participate in
Circular flow of economy
Regular ups and down of real GDP for businesses
Bussines Cycle