Intro to Ag Econ

Match the following

• economic value

• to exchange one good for another good

• to barter

• determined by scarcity and level of competition for that product

• competition

• results from the fact that most resources are limited

• international trade

• Goods can be sent thousands of miles away from where they were produced

• economics

• study of decision making

Match the following

• economic growth

• work to ensure that competition for valuable and scarce goods is regulated, fair and open

• benefit

• change in the capacity of an economy to produce goods and services compared to a different time

• markets

• place to store money to keep it safe

• bank

• refers to actual value of a product or service through an analysis of the benefits of it components or features

• intrinsic value

• the advantage of making a decision

Match the following

• corporation

• benefits of a decision outweighs the opportunity cost

• credit

• the disadvantage of making a choice

• opportunity cost

• agreement between two parties in which a person receives money in advance with an agreement to pay that money back PLUS interest

• rational choice

• an alternative to personally owning a business or forming a partnership to run a business

• scarcity

• refers to limitations of the supply of any good or service

Serves as a unit of value for measuring the relationship between scarcity and competition

• credit

• money

• opportunity cost

• intrinsic value

Explain how private property eliminates the Tragedy of the Commons phenomena.

Describe how having easier access to money allows for labor to be divided and specialized

Explain why bartering limits trade

explain why a market encourages buyers to purchase goods and service