Economic Fundamentals

non-durable goods last ___ years or less, maybe even only once

tangible items we use to satisfy our wants & needs

if supply is high but demand is low, the price will ___

Which factor of production is a tractor?

two advantages of living in a command economy:

we don't have enough resources to meet all our wants & needs

goods that can be used repeatedly & be useful for a long time

Which factor of production is "any force humans exert" in production?

kind of economy where families grow what they need & things don't change very much

type of economy w/great variety of goods & services, but ppl can slip into poverty

Smith's theory that the govt should stay out of the economy & it'll be successful

person or business who makes the goods or provides a service

a good that can be replaced by another good; example: use milk instead of cream in a recipe

kind of economy under a dictator; govt controls all aspects of the economy

If supply is low & demand is high, the price of the product will ___

another word for free market economy, discussed in Smith's 1776 book Wealth of the Nations

What do Traditional & Command economies have in common?

we rely on others & others rely on us to fulfill our wants & needs

factors of production

the model economists use to predict what can be produced at any given time

Pieces of candy are ___ in demand b/c ppl will buys lots if it's cheap, but not if it's costly

when resources are being used efficiently to produce goods & services

how much of a product is available

assembly lines are an example of ___, a way to increase productivity

In America, who determines what goods and services are produced?

what it's called when u make a trade-off between 2 things; the thing u give up

English economist who wrote a book & said govt should stay out of the economy

how much or how many of a product that consumers want

ppl & businesses focus on doing 1 thing very well in an economy; it can increase productivity

If supply ____, then the supply curve shifts outward, or to the right

economic system where the govt does not interfere in business

person who buys & uses the goods & services

$ u put into starting a business OR goods that already exist that help u in ur business

to increase productivity, businesses invest in ___ by training & motivating their employees

goods that usually are bought to go together; example peanut butter & jelly