Foundations of Economics

Making the most of resources

All man-made resources

In Economics, this term means "one more"

Government regulates economy; profit motive, consumer sovereignty, and competition absent from system

A punishment that makes you not want to do something

People choose which contracts to enter

Looks at the relationship between input and output

Innovation leads to ___, which leads to higher standard of living

A change in the quality or quantity of resources available for production can cause a shift in

All resources that come from the earth

Assurance that goods/services will be available, payments will be made, individuals are protected from econ. disaster

People control their possessions as they wish

Fair distribution of wealth

A reward that makes you want to do something

Man-made tools, items used to make other products

Education and training

Risk taking, business owning resource

The next best alternative given up when an individual/business/country makes a choice

Everyone has the same legal rights

Relies on habits/customs/rituals; little room for innovation; based on family & gender lines; low standard of living

People decide what to buy and sell

Concentration of productive efforts of individuals/firms on a limited number of activities (division of labor)

Economic system driven by profit motive, consumer sovereignty, and competition; no government regulation

Combination of two or more economic systems (usually command and market)

Decreasing inputs & maintaining or increasing outputs shows an increase in

Incentive motivating people/businesses to participate in economy; encourages innovation, growth, productivity

Unlimited wants and needs and limited resources (desirable, limited) creates

Improves quality and lowers costs; occurs as a result of economic rights

Concept that anyone can compete in the marketplace; social mobility

Freedom from government intervention in the production/distribution of goods and services