Economics
When the demand for a good or service is greater than the availability of the good or service.
what is scarcity
Things that people must have to survive
What are needs
Things that people would like to have but can live without
What are wants
The direct trading of goods and services between people without the use of money
What is barter
Value of the thing given up when a choice is made between two things
What is opportunity cost
Someone who buys goods and services
What is a consumer
Actions done for others in exchange for payment
What are services
Products that people consume or use
What are goods
The desire to have a good or service and the ability to pay for it
What is demand
Things in nature for which man has found a use
What are natural resources
Someone who makes goods or provides services
What is a producer
The study of how we produce and distribute our wealth
What is economics
The amount of a good and service that businesses produce
What is supply
Money that has been paid to a worker for the amount of time that has been worked
What are wages or salary
The three purposes of money
What is
1) a medium of exchange
2) a store of value
3) a unit of account
Economic system in which the government controls and sets prices
What is communism
Commodity or service that is made available to all members of a society
What is public good
Economic system in which maintains a hands-o0ff approach to the economy; minimal involvement
What is capitalism
The three basic economic questions each country must ask when developing the economic plan
1) What goods/services will be produced?
2) How will goods/services be produced?
3) Who will consume the goods/services
The main types of economic systems
What is
1) traditional economy
2) command economy
3) market economy
4) mixed economy
The four factors of production
What are
1) natural resources
2) capital
3) labor
4) entrepreneurs
The economic system in which individuals/businesses decide what, how, and how much will be produced/sold
What is capitalism
The value of all goods and services produced within a country in a single year
What is the Gross Domestic Product (GDP)
A system that protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
What is a Mixed Economy
This helps protect employee rights, stops monopolies, and holds companies accountable
What is government regulation