EC-070
businesses can be categorized as making goods or providing this
what are services?
basic economic problem that goes up because resources are limited and wants are unlimited
what is scarcity?
payments that motivate choices for consumers and producers
what are incentives?
this is the study of how to meet unlimited, competing wants with limited resources
what is economics?
this is the quantity of a good or service that consumers will buy at a particular price at a specific time
what is demand?
the primary purpose of business in society
what is to create value by looking at customer needs?
the value of the next best thing you give up when making a choice
what is opportunity cost?
diagram showing how households and businesses exchange resources, goods, services, and money
what is the circular flow model?
these are desires for things that can be obtained without money
what are noneconomic wants?
this type of market exists when price is low because there is a large supply and small demand
what is a buyer's market?
a key way businesses contribute to society beyond profit
what is supporting communities?
when price rises, quantity demanded decreases, and everything else is the same
diagram showing how households and businesses exchange resources, goods, services, and money
what is the circular flow model?
these are the three basic economic questions that all societies must answer
what will be produced? how will products be produced? how will products be allocated?
this type of demand exists when consumers adjust their demand for products based on price changes
what is elastic demand?
the three basic resources businesses combine to create value
what are natural resources, human resources, and capital resources?
the total quantity of goods and services that producers are willing and able to sell at various prices
what is supply?
the ability to produce a good at a lower opportunity cost than another
what is comparative advantage?
these are items found in the environment used to produce goods and services
what are natural resources?
advances in this have led to lower production costs, increased supply, and even eliminated the supply of some products like typewriters
what is technology?
the principle that businesses should balance profit with ethical responsibilities
what is corporate social responsibility?
the market condition where quantity demanded is equal to quantity supplied at a specific price
what is equilibrium?
when the percentage change in quantity demanded is bigger than the percentage change in price
what is elastic demand?
these are the two only possible ways to eliminate scarcity
what are the findings of unlimited resources or limiting human needs and wants
this is what happens to demand when consumers expect prices to drop and think they will get a bargain later
what is the consumer's wait to buy, which decreases current demand?