Economy Part 1

Wants

• Things that you must have to survive.

• Things that you really would like to have.

Which one is NOT one of the 4 factors of production?

• Land

• Labor

• Weather

• Capital

• Entrepreneurs

Needs

• Things that you must have to survive.

• Things that you would really like to have.

Describe to me in your own words the difference between Macroeconomics and Microeconomics.

When a good or service is NOT available or is in shortage, what economic term do we use to describe this?

Give me one "opportunity cost" for being with me on this Zoom today.

Free Market Economy

• An economy that is planned with no competition.

• An economy that is completely controlled by the government with no private property or ownership.

• An economy that is completely free of government influence and is privately owned by people. Buyers and sellers act in their own interest and with completion and profit driving the prices.

• An economy that is driven by supply and demand but is often influenced by the government with incentives, taxes and subsidies.

What is a substitute commodity to Coca Cola?

What is a complimentary commodity to hotdogs?

A person opened a booth at a flea market to sell paintings. This is an example of which factor of production?

• Capital

• Machinery

• Entrepreneur

• Natural Resources