Economics

What is a need?

• desires that can be satisfied by consuming a good or a service 

• work that one person does for another

• objects such as food, clothing, and furniture that can be bought

• things that are necessary for survival 

What is a want?

•  exists when there are limited resources to satisfy human wants 

•  desires that can be satisfied by consuming a good or a service 

• involves the vision, skills, and risk-taking needed to create and run a business 

• the value of something that is given up to get something else that is wanted 

What is a good?

• a metaphor for unseen forces that move the free market economy

• things that are necessary for survival 

• objects such as food, clothing, and furniture that can be bought

•  exists when there are limited resources to satisfy human wants 

What is a service?

• work that one person does for another

• occurs when a good or service is unavailable

•  a model used to show the tradeoffs associated with allocating resources between the production of two goods

• objects such as food, clothing, and furniture that can be bought

What is Scarcity?

•  exists when there are limited resources to satisfy human wants 

• occurs when a good or service is unavailable

• desires that can be satisfied by consuming a good or a service 

• involves the vision, skills, and risk-taking needed to create and run a business 

What is a shortage?

• The alternative group gives up when they make choices

• exists when there are limited resources to satisfy human wants 

• occurs when a good or service is unavailable

• work that one person does for another

What is Factors of Production?

• the resources needed to produce goods and services 

• the value of something that is given up to get something else that is wanted 

•  an economic system which combines aspects of both capitalism and socialism 

• an economic system in which production and prices are determined by unrestricted competition between privately owned businesses

What is an entrepreneur?

•  involves the vision, skills, and risk-taking needed to create and run a business 

•  a metaphor for unseen forces that move the free market economy

• The alternative group gives up when they make choices

•  occurs when a good or service is unavailable

What is a Market Economy?

• a model used to show the tradeoffs associated with allocating resources between the production of two goods

• an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

• an economic system in which government makes all economic decisions 

• the resources needed to produce goods and services 

What is a Market Economy?

•  an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

• an economic system that aspects of both capitalism and socialism 

•  involves the vision, skills, and risk-taking needed to create and run a business 

• The alternative group gives up when they make choices