Economic Concepts Flashcards

Front

What is CHOICE

Back

1. 1. Selecting an item from a list of options

3. 2. Individuals have to make choices due to Scarcity

Front

What is SUPPLY

Back

1. Supply is the amount of a good or service that a producer is willing to sell

Law of Supply

1. 1. As supply goes up, the price goes down

2. 2. As supply goes down, price goes up

Front

What is CONSUMPTION

Back

Consumption is the using of a good or service

Front

What is a Command economy

Back

An economic system where the government owns ALL resources, makes all the economic decisions and sets the price

Front

What is a MIXED ECONOMY

Back

A combination of command an free market

1. 1. Private and Government ownership of resources

2. 2. Individual Choice

3. 3. Supply and Demand determine Price

Front

What is a Free Market Economy

Back

1. 1. Private Ownership of Resources

2. 2. Individual Choice

3. 3. Supply and Demand determine Price

Front

What are the 3 Economic Questions?

Back

1. 1. What to produce?

2. 2. How to produce it?

3. 3. Who do we produce it for?

Countries create economic systems to answer these questions

A countries economic system depends on the amount of government involvement

Front

What is a Partnership business?

Back

A form of business organization with two or more owners

Front

What is a Sole Proprietorship

Back

A form of business with 1 owner

Front

What are Resources?

Back

Factors of Production used to make a good or services

1. 1. Human

2. 2. Capital

3. 3. Entrepreneurship

4. 4. Natural