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
hese are goods that are abundant and available without payment, such as air or sunlight.
Free goods
What is a tangible good.
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
his occurs when the general price level of goods and services in an economy rises over time, reducing the purchasing power of money.
inflation
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
What is economics?
Wrote the Wealth of Nations. He says the abilities and skills of a nation's people are the source of its wealth.
Who is Adam Smith.
The effort people contribute to the production of goods and services
What is labour
the "gift of nature", includes natural resources that are not created by man.
What is labor.
his is the payment received by a worker in exchange for their labour, usually expressed as an hourly, daily, or monthly amount.
Wage
This term describes the quantity of a good or service that consumers are willing and able to buy at different prices over a period of time.
Demand
graphs exactly how much a producer can make and shows the limit of how much an economy can produce.
What are production possibilities curves
Unlike microeconomics, which studies individuals and firms, macroeconomics focuses on this.
economy as a whole/aggregate economy
What is GDP (gross domestic product)
Land, Labor, Capital, Entrepreneurs
What are the factors of production
This occurs when the free market fails to allocate resources efficiently, leading to problems like pollution, overconsumption of common resources, or underproduction of public goods.
Market failure
If choosing an option does not require giving up any other alternatives, it is said to have this level of opportunity cost.
zero opportunity cost?
tools and machinery are examples of this type of good
What is capital good
This type of bank controls a country’s money supply, manages interest rates, and acts as a lender of last resort to other banks.
What is a central bank
name 4 funstions of money
1. Medium of exchange
2. Unit of account
3. Standard for deferred payment
4. Store of value