Principles of Economics
Economic Principle 1 states people -
Choose
Anyone working a job is -
Labor
This is the most common system in the world
Mixed Economy
Market defined by many sellers with similar products
Perfect Competition
All choices involve -
Costs
These two factors of production are (typically) people
Entrepreneurship and Labor
North Korea is the closest example to this type of system
Pure Command Economy
This market types if also called a cartel because of a small group of powerful businesses having total control
Oligopoly
People respond to these in predictable ways (principle 3)
Incentives
Capital
Market Economy
Fast food is an example of this market type with many sellers selling different products
Monopolistic Competition
Mexico grows Avocados, Colorado grows peaches. Their wealth can increase if they -
Trade
You can think about this factor as the company boss
Entreprenuership
South Korea and the United States are good examples of _______ economies
Market
Companies like Apple and Disney are accused on being this type of market
Monopoly
Principle 4 states that these things can individual choices and incentives
Economic Systems
Another way to describe Land as a factor
Natural Resources
Three key questions that determine market type
What is produced
How it's produced
Who receives the product
These two competition types are defined by very few sellers
Oligopoly & Monopoly