uuit 1: introduction to economics

what are the 3 basic econimc questions?

what to produce, how to produce, and for whom to produce

what is the benefit for adding one more additional unit?

marginal benefit

what iss the cost for adding one more additional unit?

marginal cost

toys for a toy store would be an example of which factor of production?

capital

a cashier for a toy store represents which factor of production?

labor

jesse wants to open her own computer store, example of what?

entrepreneur

coffee beans used for a coffee shop would be example of what?

land

you quit your job to take a different job with a higher salary?

economic freedom

buy a car from your neighbor?

voluntary exchange

you own property and do with it what you wish?

private propertty

you freely engage in market transactions with buinesses

voluntary exchange

a movie theater would be an example of which decision maker rin the circular- flow model?

business

an employee at the movie theater would be an exmplee of which decision maker in the circular flow model?

household

shley purchases popcorn at the movie theater, representes the resource or product market

product market

ashley purchase would be an example of which transaction in the circular flow model?

household to business

mackeenzie works at the movie theater, everytime she recieves a check, taxes have been deducted this would be an example of which transaction in the circular flow model?

household to government

definititon of economic?

the study of how society deal with the problem of scarcity, economists ask how do we stisfy our wants and needs by making choices

definition of scarcity?

not having enough resources to fulfill all of society wants and needs

definiton of shortage?

production is slowed or stoped intentionally or unitentionally

factors of productions?

land, capital, labor, and entrepreneurship

what is land?

natural resources, not man made

what is labor?

human effort on a task for which they are paid

what is capital?

man made good uses to produce other good and services

what i entrepreneurship?

risk taker in search of profits, combine the other 3 in productions

what is trade off?

the idea that when you shoose one thing, you give up something else

what is opportunity cost?

the most desirable alternative trade off as a result od a decisions

what is marginal cost?

eextra cost of addint one more unit

what is marginal benefit?

extra benefit of adding the same unit

what is an economic system?

the way people organize the production of goos and services, the type of economic system is determine by who answers the three basic questions

property rights?

the concept that people have the right and provilege of owning and controlling their possessions as they wish

incentives?

an expectation that will encourage peole to behavee a certain way

economic freeedom?

the right to make your won economic deciions

competiton?

the effort of two or more businesses to get the busines of others by offering the best deal

role of government?

governments adopt various policiees and actions intended to manage resources

definiton of traditional?

economic systemm centered around tradition and family

definition of communism?

eeconomic system in which goveernment answers all 3 basic questions

deefiniton of socialism?

economic system in which the people own private property and elected government officials manage production

definition of market?

economic system in which consumers and business firms anwer the three basic questions

wwhatgoods and services should be produced by traditional?

production is focused on what is needed to survive

what goods and services should be produces in communicm?

the gov owns all the resources and decides what to produce

what goods and services should be produce in socialism?

the people own resources and elect gov officials

what goods and services should be produce in market?

consumers and businesses decide what will be made

how should these goods and services be produced in traditional?

these type od economic system are typically hunting and agricultural

how should these good and servicees be produced in communicm?

the government decides where people work and what they are paid

how should thse goods and services be produced in socialism?

the ggov decides how goods and services are produced

how should these goods and services be produced in market?

business firms decide based on efficiency

who will get these goods and services in traditional?

the community consumes goods and services

who will geth these goodss and services in communism?

the gov decides how good and service are distributed

who will get these goods and serrvices in sociialism?

the gov decides how goods and services are distributed

who will get these goods and service in market?

consumers buy the goods and services they want

advantages in traditional?

predictable and stable

advantages in communism?

resources can be redirected quickly

advantages in sociialism?

equaal access to health care, less inequality, higher standard of living

advantages in market?

freedom, incentives, variety of goods and services

disadvantages in traditional?

susceptible to natural disaster/change is slow

disadvantages in communism?

ittle economic ffreedom, no incentive to be efficient, needs are not met

disadvantages socialism?

high taxes and more government control

disadvantages in market?

unequal distributing of income, cannot provide publid goods and servicees

productivity?

a measurre of an economic performance that compares the amount of gods and services produced

speecialization?

how an individual concentrates their skills and labor within theirr career