Economics
Refers to the economic problem of having limited resources with unlimited wants
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
were the alternative choices that you give up in favor of the choice you made.
What is trade-offs
The three different types of businesses.
1)Proprietorship
2)Partnership
3)Corporation
Someone who buys goods and services
What is a consumer
Actions done for others in exchange for payment
What are services
Tangible items that people consume or use
What are goods
is an individual who searches for profit in a new field with existing resources.
What is an entrepreneur
This measures the total income of every person and the total spending on the outcomes of goods and services.
What is GDP?
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
What is economics?
The "sweet spot" where price is stable and there is neither a shortage, nor a surplus.
Market Equilibrium
The effort people contribute to the production of goods and services
What is labor
the "gift of nature", includes natural resources that are not created by man.
What is labor.
This is a great way to get free food.
Dumpster Dive.
A good that last three or more years.
What is a durable good
On an supply and demand graph, this area is ABOVE market equilibrium.
Surplus
This law states that producers will produce more when they can sell at a high price.
Law of Supply
What is GDP (gross domestic product)
Land, Labor, Capital, Entrepreneurs
What are the factors of production
In countries like North Korea, they decide what to produce.
What is the command economy?
the cost of the next best alternative us of money, time, and resources when one choice is made over another.
What is opportunity cost?
tools and machinery are examples of this type of good
What is capital good
This law states that consumers (people who buy) will buy more goods and services when prices are low and less stuff when prices are high.
What is the Law of Demand
On an supply and demand graph, this area is BELOW market equilibrium.
Shortage