Civics Ch. 16

amount that the consumer is willing to buy at various prices

the cost of choosing the "next-best" alternative

If your dad loses his job, what happens to both income and demand for certain products (like eating out)

If demand exceeds or is more than supply:

The process of looking at variable costs, total costs, marginal revenue, marginal cost:

If supply exceeds or is more than demand:

3 main questions each system must answer:

Land, labor, and capital are the main types of resources

$ generated from producing one more unit

cost of producing one more unit of product

individuals and businesses answer the 3 questions

amount that the seller is willing to make ready to sell at various prices

Buyers and sellers come together in the market

not having all the goods we would like to have

person who makes the good is called the consumer

Economics is the study of man's

If the price for something goes up, it is a signal that the consumer might have to adapt or change

Person who buys the goods is called the producer

three basic questions are answered by ritual or custom:

If the number of consumers increase, what happens to demand?

A pure economist believes in little or no government interference

The three questions (what to make, how to make, and for whom) are answered in part by the concept of

costs that do not change no much what the amount is a business produces

If we all switch from Coke to Pepsi, what happens to the demand for Coke?

Government owns the means of production and makes the decisions to answer the three ?s

costs that change, usually labor

We make a decision to sacrifice something in order to get something: