BUSINESS
the economic resources a nation uses to make goods and supply services for its population
Factors of production
science that examines how goods and services are produced, sold, and used
Economics
These affect the price, demand, and availability of a good or service
Market Forces
All economic resources are ______, but needs and wants are ________
Limited ; Unlimited
List the four factors of production a nation uses to make goods and supply services for its population
land, labor, capital, and entrepreneurship.
the willingness and ability to start a new business
Entrepreneurship
all the tools, equipment, and machinery used to produce goods or provide services
Capital
the action taken by two or more businesses attempting to attract the same customers
Competition
This develops when demand is higher than the available resources
Scarcity
Anything that can be bought or sold
Product
The first step in Systematic decision-making
Define the problem
The point where supply equals demand for a product
equilibrium
When demand is less than supply, this develops
Surplus
the value of the next best option that was not selected
Opportunity Costs
the market value of all final products produced in a country during a specific time period
Gross Domestic Product (GDP)
When demand is greater than supply, a ______ develops
Shortage
Socialism is a form of this economy
Command
This is one reason people choose to start and expand businesses
Profit motive
In a ________ Economy, economic decisions are based on a society’s values, culture, and customs
Traditional
the general rise in prices throughout an economy
Inflation
a measure of a worker’s production in a specific amount of time, such as an hour, a day, or a week
Productivity
an economic system where the economic resources are privately owned by individuals rather than the government
When two or more businesses work together to remove their competition, set prices, and control distribution
Collusion
the four economic systems are
traditional economy, command economy, market economy, and mixed economy
the total money circulating at any one time in a country
Money Supply