Praxis 5081- economics

Economics

• A single company controls the technology necessary to supply the product.

• Only one business offers the product in a certain area.

• Is the study of the ways specific society allocate resources to individuals and groups within that society.

• A single supplier has a district advantage over the others

What is a market economy based on?

• Only supply

• Supply and demand

• Only demand

• Market efficiency

What does demand have to do with?

• How much can be produced to meet the demand or how much suppliers are willing and able to sell.

• What customers absolutely need.

• What customers want and need, as well as what quantity those customers are able to purchase based on other economic factors

• Solely based off of what the market can produce.

What does supply have to do with?

• How much can be produced to meet the demand or how much suppliers are willing and able to sell.

• What customers absolutely need.

• What customers want and need, as well as what quantity those customers are able to purchase based on other economic factors

• Solely based off of what the market can produce.

Elasticity

• This is based on how the quantity of a particular product responds to their price demanded for that product.

• This occurs when a market is capable of producing output high enough to meet consumer demand, that market is efficient.

• In the field of international trade, this refers to a country focusing on a specific product that it can produce it more efficiently and more cheaply, or at a lower opportunity cost, than another county, thus giving it a comparative advantage in production.

Market efficiency

• This is based on how the quantity of a particular product responds to their price demanded for that product.

• This occurs when a market is capable of producing output high enough to meet consumer demand, that market is efficient.

• In the field of international trade, this refers to a country focusing on a specific product that it can produce it more efficiently and more cheaply, or at a lower opportunity cost, than another county, thus giving it a comparative advantage in production.

Comparative advantage

• This is based on how the quantity of a particular product responds to their price demanded for that product.

• This occurs when a market is capable of producing output high enough to meet consumer demand, that market is efficient.

• In the field of international trade, this refers to a country focusing on a specific product that it can produce it more efficiently and more cheaply, or at a lower opportunity cost, than another county, thus giving it a comparative advantage in production.

In a market Economy supply and demand are determined by the consumers. In a planned economy is the same statement true? If not what is their supply and demand determined by?

• Yes that is true.

• No, a public entity, or planning authority make a decision about what resources will be produced, how they will be produced, and who will be able to benefit from them.

• No, it is determined by the consumers

Market Socialism

• This is based on how the quantity of a particular product responds to their price demanded for that product.

• This occurs when a market is capable of producing output high enough to meet consumer demand, that market is efficient.

• In the field of international trade, this refers to a country focusing on a specific product that it can produce it more efficiently and more cheaply, or at a lower opportunity cost, than another county, thus giving it a comparative advantage in production.

• The economic structure fall somewhere between the market economy, and the planned economy

Micro economics

• is the study of supply and demand as determined by consumers?

• Studies how resources are allocated.

• Focuses on economic factors, such as the way consumers, behave, how income is distributed, and output and input markets