Intro to Economics
Tangible items that people consume or use
What are goods
Deals with the economy on a smaller scale
What is Microeconomics
Actions done for others in exchange for payment
What are services
tools and machinery are examples of this
What is physical capital
Economy where customs, habits, and traditions answer the Three Economic Questions
What is traditional economy
Things that people must have to survive
What are needs
The phases are Peak, Depression, Recession, Expansion
What is the Business Cycle
Things that people would like to have but can live without
What are wants
is an individual who searches for profit in a new field with existing resources.
What is an entrepreneur
Economy where the government answers the Three Economic Questions
What is Command Economy
the cost of the next best alternative use of money, time, and resources when one choice is made over another.
What is opportunity cost?
Deals with the economy on a larger scale such as the whole nation
What is Macroeconomics
The effort people contribute to the production of goods and services
What is labor
What is capital
Economy where both the government and the producers and consumers answer the Three Economic Questions
What is Mixed Economy
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
What is economics?
What to Produce, How to Produce, and Who to Produce it for
What are the Three Economic Questions
Land, Labor, Capital, Entrepreneurs
What are the factors of production
What is land
Economy where the producers and consumers answer the Three Economic Questions
What is Market (or Free Market) Economy
Refers to the economic problem of having limited resources with unlimited wants
What is scarcity
Everything we do has a cost because resources are limited. TINSTAAFL
What is there is no such thing as a free lunch.
How businesses and individuals interact in the market
What is Circular Flow Model
includes resources that are not created by man such as getting a college degree
What is human capital
Market Economy, Mixed Economy, Command Economy, and Traditional Economy
What are Economic Systems