BTC Section 1.2 Intro to Economics

Process of choosing an option after evaluating the available information and weighing the pros & cons

Science that examines how goods and services are produced, sold, and used

An economic system is an organized way in which a nation chooses to use its resources

A Market Economy allows individuals to make their own economic decisions, also known as free enterprise

Work performed by people in organizations, also called human resources.

An entrepreneur starts a new business or purchases an existing business.

The willingness and ability to start a new business

When a demand is higher than the available resources

The price of a product is determined by the relationship of the supply of a product and the demand for the product

A Mixed Economy in when both the government and individuals make decisions about economic resources.

In a Market Economy the government makes all the economic decisions for its citizens

Shannon gave up going to a concert so she could buy a new outfit. She made a/an

Action taken by two or more businesses attempting to attract the same customers

Opportunity Cost is the value of the next best option that was not selected

Bob's Pizza buys some new pizza ovens and delivery trucks. These are examples of

All the tools, equipment, and machinery used to produce goods or provide services

Traditional economies make economic decisions based on a society's values, cultures, and customs.

The economic resources a nation uses to make goods and supply services for its population

In Pepperonia, the economic resources are privately owned by individuals. This is called