What Is Economics

Which economic system would we identify with Adam Smith?

I would identify Karl Marx with a .............

Shortages can be ______ or ______, where as scarcity always exists

Motivating force in the Free Market

cost of the next best alternative among a person’s choices

All the alternatives that we give up, whenever we choose one course of action over another.

Required for survival.

Condition where unlimited human wants face limited resources.

An arrangement that allows buyers and sellers to exchange things

Regulating force in the Free Market

Individuals & business answer the three economic questions and own the factors of production

political system that arose out of the philosophy of socialism

right of government to take private property for public use

study of how people seek to satisfy needs and wants with scarce resources

concentration of productive efforts of individuals and corp. on a limited number of activities

Desired for satisfaction but not essential to survival.

Factors of Production

Govt. controls the factors of production and answers the questions of production and consumption.