Basics of economics

Economics

• A branch of science
• A branch of mathematics
• A branch of social science that deals with the production, distribution, and consumption of goods and services
• A branch of philosophy

free market

• A system where the government determines production, investment, and prices
• A system where the government has no control over the market
• A system where the government has complete control over the market
• A system where the government partially controls the market

producer

• A person who makes goods or services
• A type of animal
• A type of plant
• A type of mineral

distributors

• A device that distributes electric current
• A person who supplies goods to stores
• A type of software
• A type of food

consumers

• People who produce goods and services
• People who buy and use goods and services
• People who sell goods and services
• People who invest in businesses

labor

• A type of cheese
• A type of fruit
• A type of car
• Work performed by people

resources

• A material or substance used in the primary production or manufacturing of goods
• A type of food
• A type of animal
• A type of plant

financial capital

• Money used to start a business
• A city known for its financial institutions
• A type of insurance policy
• A type of stock market investment

entrepreneurs

• A type of animal
• A type of food
• People who start, organize, and manage their own businesses
• A type of car

All economic systems must answer these key questions

• What and how much should be produced?

• How should goods and services be produced?

• Who gets the good and services that are produced?

• Why goods and services are produced?