Understanding Characteristics of Economics

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Economics

Back

The study of how people and businesses use resources to satisfy needs and wants.

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Scarcity

Back

The condition of limited resources compared to unlimited wants.

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Opportunity Cost

Back

The value of what you give up when you make a choice.

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Supply

Back

The amount of goods or services businesses are willing to produce and sell at a certain price.

Front

Demand

Back

The amount of goods or services customers are willing to buy at a certain price.

Front

Equilibrium Price

Back

The price at which supply equals demand.

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Economic System

Back

The way a society organizes the production and distribution of goods and services.

Front

Market Economy

Back

An economic system where decisions are made by individuals and businesses, guided by supply and demand.

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Command Economy

Back

An economic system where the government makes all economic decisions.

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Traditional Economy

Back

An economic system where decisions are based on customs, traditions, and cultural beliefs.