What is economics
What is economics
Economics is the study of how individuals, businesses, and governments make choices about allocating resources to satisfy their needs and wants.
What is the economic system
An organized way for providing for the wants and needs of society
What is a Net Income
Determined by subtracting expenses, including taxes, from revenue
How do demand impact prices in a market economy?
Conversely, when demand increases and supply remains constant, prices tend to increase. This relationship helps determine market prices.
How do supply impact prices in a market economy?
When the supply of a good or service increases, and demand remains constant, prices tend to decrease.
What are the factors of production in economics include
Land, capital, labor, entrepreneurs, production
Why do societies use an economic system
It's a way of proving the wants and needs of people
What are the three form of business
Sole Proprietorships, Partnerships, and Corporations
What is demand
The desire, ability, and willingness to buy a product
What is supply
The amount of a product that could be bought at all possible prices that could prevail in the market
why does the PPF moves left, and why the PPF moves right. Include an example in each scenario.
A natural disaster affecting capital goods is an example of a cause of the curve shifting to the left. A shift to the right would be caused by increased productivity.
What is an example of mixed economics
China and Venezuela
What Is a Sole Proprietorships
business owned and run by one person
What is the income effect
Change in quantity demanded due to a change in price that alters a consumer’s real purchasing power
What is a fixed cost
Cost that a business incurs even if there is little or no activity
What is a trade off
It's a alternative choice
Name one characteristics of command economies
That the government makes decisions about economics
What is a advantage of a partnership business
ease of start up; ease of management; lack of special taxes (partners pay income taxes only); can attract more financial capital than proprietorships; more efficient with size
What can cause demand here in mammoth
Weather that mean snow can cause demand
What can change the supplies
Something that can change the supply is the cost of resources
What is opportunity cost
Is the cost of the next best alternative when a choice is made
What is a competition
The struggle among sellers to attract consumers
What is a C Corp
Taxed at the corporate level. Double taxation.
What does elastic demand do
Change in price causes relatively larger change in demand
What is elastic supply
change in price causes major change in production