Basics of Economics

Key economic problem facing all societies resulting from a combo of lots of resources & people with limited needs/ wants

Economic system characterized by a central authority that makes most of the major economic decisions

natural resources or “gifts of nature” not created by human effort; one of the four factors of production

The portion of a change in quantity demanded that is due to a change in the relative price of the good.

More demand at lower prices, less at higher prices; inverse relationship between price and quantity demanded.

Value of all good, services, and structures produced in a country in one year.

The situation where quantity supplied is greater than quantity demanded at a given price is called surplus

Market in which goods and services are bought and sold

Services are work or labor performed for someone

Factor Markets are markets in which productive resources are bought and sold

Amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a time

A ______ situation where quantity demanded at a given price cannot be met

A combination of quantities that someone would be willing & able to buy over a range of possible prices at a time

Communism is when there is no government and the community works for a common good

tools, equipment, and factories used in the production of goods and services; one of the four factors of production

Economic system that has some combination of traditional, command, and market economies

A system where private businesses operate freely for profit with limited government intervention.

Alternative that must be given up when one choice is made rather than another is called the _____.

Cost of the next best alternative use of money, time, or resources, when one choice is made rather than another is

people with ll their abilities and efforts one of the four factors of production; does not include the entrepreneur