Terms
Food, water, shelter, clothing
Land, Labor, Capital, Entrepreneurship
What are the four factors of production?
as the price decreases, the ______ increases. This means more buyers, yet fewer sellers
What is the law of demand?
Economic systems attempt to answer three basic questions for a society:
What goods and services should be produced?
How should the goods and services be produced?
Who should receive the goods and services that are produced?
is one that cannot be replaced in a timely manner or at all by nature or by man such as fossil fuels (coal, gas & oil), uranium and iron.
What is a non-renewable resource?
Any item that can be bought and sold. Ex: books, shops, washing machines, cars, wood, coffee, handbags, beds, chairs, mirrors, computers, tractors, bottles, clothes, blenders, lotions, toothbrushes, and houses.
What is a good?
Unlimited wants, Limited resources
What is scarcity?
a long and severe decline in economic activity that is characterized by business failures and high unemployment.
What is an economic depression?
Type of economic system in which it is passed on from generation to generation
What is a traditional economy?
is the process of changing the raw materials of the resource into some economic good or service that can be used to satisfy desires.
What is production?
Any action that one person or group does for another in exchange for payment. Ex: work done by barbers, doctors, lawyers, mechanics, banks, insurance companies, restaurants/fast food/deli
What is a service?
Having to choose something and having to give up something in return. Ex: going to the mall and giving up a nap
Opportunity Cost
The period of economic decline characterized by decreasing total production and often by rising unemployment.
What is an economic recession?
Type of economic system in which the government controls all forms of production.
What is a command economy?
Is anything used to produce a good or service that can be used to satisfy desires. Are what we use to produce our goods and services
What is a resource?
The fact of being required or essential
What is a necessity?
monitoring your spending habits
What is budgeting?
a rise in prices relative to money available. In other words, you can get less for your money than you used to be able to get. Ex: a bacon egg and cheese is now $5 when it used to be $3
What is inflation?
Having the choice, power and freedom to choose what you want to do or how you want to spend your money is important.
What is a mixed market economic system?
Uber, a new game, make-up, shoes
What is a want?
An inessential, desirable item which is expensive or difficult to obtain.
What is a luxury?
as the price increases, the ______ increases. This means more sellers, yet fewer buyers.
What is the law of supply?
is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. They regulate the factors of production, including land, capital, labor, and physical resources.
What is an economic system?
is one that can be replaced either naturally or by man such as plants, seeds, livestock, fish, water, solar, wind and glass
What is a renewable resource?
The ________ is defined by five main characteristics namely, owning private property, entering contracts, making personal choices, engaging in enterprise and competition, and pursuing self-interest.
What is the free enterprise economy?