Basics
The study of how societies use scarce resources to produce and distribute goods and services.
What is economics?
A person who purchases goods or services for personal use.
Who is a consumer?
An economy where traditions and customs dictate production and distribution.
What is a traditional economy?
The amount of money that consumers spend on goods and services.
What is consumption?
Tangible items like food, clothing, and cars that satisfy wants.
What are goods?
An individual or company that creates goods or provides services for sale.
Who is a producer?
A blend of private and public enterprises where both market and government play roles.
What is a mixed economy?
The fundamental issue in economics arising from scarcity.
What is scarcity?
Intangible activities such as teaching, haircuts, and medical care.
What are services?
An economic system where private individuals own resources and businesses operate for profit.
What is capitalism?
The influence of consumer preferences and needs on the economy.
What is supply and demand?
The market condition where consumer demand meets production.
What is a market economy?
The process of turning inputs (labor, raw materials) into finished products.
What is production?
An economic system emphasizing public or collective ownership and more equal distribution.
What is socialism?
The amount of a product that producers are willing to sell at various prices.
What is supply?
A situation where the production and consumption balance is optimal.
What is supply and demand?
The methods and routes by which products and income are allocated to people and places.
What is distribution?
An economy where prices and production are determined by voluntary exchange in markets.
What is a market economy?
Economic systems focusing on consumer needs over efficiency.
What is socialism?
The interaction of demand and supply determining the price of goods.
What is the market?