Opportunity Cost and Trade-offs
Name one necessity?
Type of production that refers to natural resources that exist and were not created by people.
Land
When does scarcity exist?
When demand exceeds supply.
In this economic system, all three economic questions are answered by customs and tradition.
Traditional Economy
To distribute for a particular purpose
Allocate
Benefit of purchasing one more of an item
What is a marginal benefit?
Type of productions that refers to the work that people do and includes all of their abilities, efforts and, skills.
Labor
You have to give up one thing for another
What happens when there is limited supply?
Economic system in which a central authority controls all economic decisions.
Command Economy
The quality of behaving or speaking in such a way as to avoid causing offense or revealing private info
Discretion
Cost of obtaining one more of an item
Type of production that refers to manufactured goods used to produce goods and services.
Capital
Taxes
How does the government deal with scarcity?
Market Economy
Exchange of products without the use of money
Bartering
Distinguish between wants and goods
What is a decision?
Type of production that refers to the ability of individuals to start new businesses, introduce new products, and improve business process.
Entrepreneurship
If a drought were to destroy a particular crop
What is an example of a shortage?
Market economy
What type of economy is the USA?
Minimum price set by the government that can be charged for goods and services
Price floor
What you give up to get something else.
What is an opportunity cost?
Resources needed to produce goods and services are...
Factors of Production
The state of being short in supply is called...
Scarcity
Having all three aspects of each type of economic system found in a economic system is considered a...
Mixed Economy
Maximum set by government that can be charged for goods and services
Price ceiling