the study of how individuals and societies make choices under the condition of scarcity.
is a condition that exists when there are not enough resources to satisfy all of the competing uses.
Factors of Production
also known as resources, they are the things used to produce goods and services
Labor or Human Resources
includes the physical and mental capabilities of individuals used in the production of goods and services.
Land or Natural Resources
land includes all type of natural resources such as physical land, timer, water, oil, minerals, and plants.
this includes machines, infrastructure, equipment, and tools. Some examples include trucks, factories, copy machines, etc.
study of how individuals, households, and businesses make choices.
study of the aggregated or total behavior of the economy
is the value of the next best alternative other than the choice that was made.
they occur when you give up something to gain something else.
an outcome that is not expected
is the additional positive outcome resulting from an action
is the additional price resulting from an action
an idea/item/etc. that helps convince or influence someone to do something
means that individuals are allowed to own property and use it in any legal way they see fit. The most common types of properties are land, houses, and businesses, like farms or factories.
this is when the government almost or completely controls the economies by deciding what goods consumers can buy
people often do “what has always been done
this combines characteristics from a command economy and a market economy where individuals and the government decide what kind of business, goods, and services they want to have/buy.
Adam Smith is the author of “The Wealth of Nations” and is known as the “father of economics”
place where a family lives where, consumers analyze their choices based on their expected income and determine the best combination of goods they can afford.
these have to decide what resources to buy from the market and what goods and services to produce and sell to households
consumers analyze their choices based on their expected income and determine the best combination of goods they can afford.
is the advantage, or fulfillment, a person obtains from consuming a good or service.
this is an economy where the people decide what goods/services to support using their own money instead of having the government do it
rewards that help people do a certain task
to succeed, businesses must produce goods and services that consumers are willing and able to buy
an enterprising person that has what it takes to lead a business from an idea all the way to a final product or service that you can buy.
stream of money
Standard of Living
when a person is living healthy with a decent amount of wealth
this is the total amount of experience, knowledge, skills, etc. that a typical group/person/population has
items that helps produce other items faster, more efficient, cheaper, etc.
is a component of any economic system that uses prices expressed in any form of money for the valuation and distribution of goods and services and the factors of production
Law of Supply
is the willingness and ability to bring to market (produce and/or sell) specific amounts of a good or service at different prices in a specific time period, considering all things remain the same.
Law of Demand
is the willingness and ability to buy specific quantities of a good or service.
a balance where two things in capital equal one such as supply and demand
when an object is able to change
these regulations help people that are poor and can’t afford resources for their family
when something is auctioned, this is the minimum price