Economics Basics

In a market economy these serve to ration scarce resources and motivate production

Economic system which has strong controls on the economy but also allows private property.

The person who assembles the factors of production in hopes of earning a profit

Economic system where buyers and sellers interact to determine who gets what

The difference between the amount a consumer pays for a good & the amount a producer receives is called profit.

price of a good x quantity sold = revenue

The condition resulting from unlimited wants with limited resources available

The idea that each successive slice of pizza is worth less and less illustrates the concept of

Human capital can make workers:

Money spent for a good or service.

The output of businesses:

Businesses seek to:

The physical and mental effort required to produce goods and services

When one seller tries to outdo another seller

That which if given up when purchasing something else

Economy system where the government makes all the important decisions regarding the economy

His book, The Wealth of Nations, defined market economics for the first time

Productivity:

As prices go up, producers are willing to provide more of a good for sale.

The study of how people distribute scarce resources

Money spent for a productive resource.

When government subsidizes an activity, it means they:

Type of economy where things are done the way they have always been done

Cost and price are pretty much the same thing.

A nation's GDP divided by its' population measures what?

This is how consumers decide what will be produced.

A negative incentive is called a(n):

Items created by nature that are used to create goods and services

French term for the philosophy that says the government should stay out of the economy, means "hands-off".

The right to own and use things of value