Card Set Information
concord high school economics class
Relies on voluntary trade. Also known as "free enterprise"
An arrangement that allows buyers and sellers to make exchanges
The incentive to have a buisness
What are 5 concepts in the Economic Way of Thinking?
1) Scarcity forces people to make choices
2) All choices involve alternatives
3) People try to make choices that get them greater benefits than costs
4) People respond to incentives
5) People gain when they trade voluntarily
What are the 3 basic economic decisions in a market economy?
goods and services should be produced
should goods and services be produced
will goods and services be produced
The study of the economy as a whole (examples: US, Concord, NH)
The study of individual consumers and buisnesses
How we make decisions comparing the possible benefits of a choice to what it will cost us
A social science
Someone who takes buisness risks in hopes of earning a profit
Items of value that can be seen or touched
The highest valued alternative one gives up when making a choice
The inability to satisfy everybody's
Items of value that cannot be seen or touched
Machinery and tools
Knowledge about the production and distribution of most products is...
spread amoung many people who may not even know each other.
In a market economy, what organizes and coordinates the production of goods and services?
exchange or scarcity
What does a production possibilities graph show?
alternative ways an individual, a buisness or even a nation can use its resources.
What is a trade-off?
The choice given up
What are the labels to these blanks? What is this equation called?
_________ + __________ +____________ = _____________
This is called a resource equation.
Create a resource equation where the finished product is a book.
What is the fourth factor of production?
Entrepreneurship, which is the imagination, innovative thinking and management skills it takes to start a buisness
The economic term scarcity is most often used to refer to...
The condition of limited resources and unlimited wants
A process that combines economic resources for a result of a good or service
The process of getting a product or service to consumers before the human want is satisfied
Using a product or service completes the want-satisfaction chain
Factors of Production
Land, labor and capital resources
What type of good is not a subject of economics?
anything that is free
true or false? a bus station is an example of a capitol resource.
true or false? a resource or a product is scarce if it is not freely available (price=$0)
true or false? people make decisions based upon the extended opportunity cost of a choice.
true or false? a good is free if it involves no apparent cost to you
Celine buys a car for $17,000.
Five years later, Celine sells that car for $10,000. When Celine sold the car, it was worth __________________ to the buyer.
at least $10,000