Fundamental Questions of Economics and Market Dynamics

Fundamental Questions of Economics

Three questions: what, how, and for whom to produce.

Market Economy

An economy where people determine goods distribution.

Supply and Demand

Economic model explaining price determination.

Price Change with Demand

High demand and low supply increases prices.

Increased Competition Effect

Typically lowers prices of goods and services.

Productive Resources

Inputs used to produce goods: land, labor, capital.

Inputs

Resources used in production processes.

Outputs

Final products produced from inputs.

Credibility

Trustworthiness of a source or information.

Bias

Prejudice in favor or against something.

Democracy

System of government by the whole population.

Dictatorship

Government by a single leader with absolute power.

Monarchy

Government led by a king or queen.

Theocracy

Government based on religious authority.

Verify

Confirm the accuracy of information.

Categorize

Classify items into groups based on characteristics.

Contemporary

Existing or occurring at the same time.

Accuracy

Precision and correctness of information.

Excerpt

A short extract from a text.

Absolute

Not qualified or diminished in any way.

Attain

To achieve or reach a goal.

Consistent

Always acting or behaving in the same way.

Perspective

A particular attitude toward something.

Supreme

Highest in rank or authority.