2.01 Economics, 2.02 Economic Terms, 2.03 & 2.04 Economic Terms – Flashcards
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Economics studies how individuals and societies seek to satisfy needs and wants through incentives, choices, and allocation of scarce resources
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Economics
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When there is not enough supply to fill the demand
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Scarcity
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Goods produced and used to make other goods and services.
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Capital Resources
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"Gifts of nature" that are present without human intervention (ex. land)
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Natural Resources
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The knowledge, efforts, and skills people bring to their work, also known as labor.
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Human Resources
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The initiative to improve goods and services or create new ones.
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Entrepreneurial Resources
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Economic system that is run by a central government or authority
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Command economy
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Run by businesses and consumers to meet the needs and wants. Supply and demand are responsible for the price and allocation decisions. Individuals decide what, how and for whom goods and services are produced.
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Market economy
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A combination of a command and market economy.
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Mixed Economy
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The type of economy where people believe in doing things the same as they have always been done in the past.
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Traditional Economy
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Includes the customers and locations that a business wants to serve
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Marketplace
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Items sold that can be physically weighed or measured. Ex: lap tops, phones, food
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Goods
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Tasks that businesses perform or provide for customers. Ex: hair cut, car wash, auto repair
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Services
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Includes the customers and locations that a business wants to serve.
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Market
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How much of a good or service a producer is willing and able to produce at different prices.
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Supply
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An individual's need or desire for a good or service at a given price.
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Demand
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As prices fall for a particular good or service, the demand for that item will increase and vice-versa.
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Law of Demand
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As the price of a particular good or service increases, the supply for that item will also be increased and vice-versa.
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Law of Supply
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The amount at which a good or service will be sold in a market.
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Price
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Where shares of stocks (shares of ownership in corporations) and other securities (such as bonds and futures) are bought and sold (or traded)—not necessarily a "place" with the prevalence of electronic transactions,
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Stock Market
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physical location where stocks are listed and bought and sold (or traded); New York Stock Exchange (NYSE), American Stock Exchange, NASDAQ—virtual exchange
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Stock exchange
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Stock prices are going up. Consumers are optimistic and buy stock in anticipation of gains. High trading volume of stocks. Dealers are more likely to buy than to sell stock.
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Bull market
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Stock prices are going down or falling. Consumers are pessimistic and reluctant to buy stock for fear of losing money. Investors are motivated to sell stock so they won't lose more money.
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Bear market
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Buying and selling of goods and services on the Internet. Also called electronic commerce, e-business. Globally competitive & available 24/7.
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e-Commerce
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Where supply and demand meet
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Equilibrium Point
