Supply and Demand
When the supply is low...
The demand is high.
All components necessary to produce a society's goods/services.
What is economics?
The study of how we use limited resources to fulfill unlimited needs and wants.
What is an economic system?
The survival of any society depends on its ability to provide food, clothing, and shelter for its people. Because these societies face scarcity, decisions concerning What, how, and for whom to produce must be made.
Is a dog a need?
No.
When the demand is low, but the supply is high?
A surplus.
Name one type of Natural Resources:
1. renewable
2. nonrenewable
Define Scarcity:
When we don't have enough resources to produce all of the things we would like to have.
Name three types of economic systems.
Traditional
Market
Command
Mixed
(only need 3)
Is food a need?
Yes.
As a seller, what do you do to the price of a product when the demand is high...
You increase the price.
Capital resource definition:
Things used to produce goods/services, like buildings, materials and equipment.
What are goods?
Goods are things that can be physically weighed and measured.
What is a market economy?
System in which economic decisions are made in the marketplace according to the laws of supply and demand.
Def. of a Need:
require (something) because it is essential or very important.
As a seller, what do you do to the price of a product when the supply is low...
You increase the price.
Human resources definition:
Knowledge, efforts, and skills people bring to their work, also called labor.
What are services?
They are tasks that people or machines perform.
What is a traditional market?
Tradition and custom govern decisions. Found in rural underdeveloped countries.
Def. of a want:
have a desire to possess or do (something); wish for.
What is it called when the demand is higher than the supply?
A shortage.
Entrepreneurial Resources definition:
The initiative to improve goods and services or create new ones.
What is a recource?
It is anything that people can use to make or obtain what they want or need. Also known as the factors of production.
What is a command system?
It is a system in which a central authority such as the state makes the key economic decisions.
Is money a need or want?
Both (could be argued).