Economics

Opportunity Cost

The most  desired  trade-off of a decision.

Trade-Off

Each of the alternative options given up when making a decision

Scarcity

Limited Resources for unlimited needs and wants

Factors of Production

The resources used to produce goods and services, including land, labor, capital, and entrepreneurship.

Land

A natural resource used in the production of goods and services, including soil, minerals, and water.

Labor

The human effort used in the production of goods and services, encompassing physical and mental work.

Capital

Money and manmade objects used to make products or perform services

entrepreneur

An individual who organizes and operates a business, taking on financial risks in pursuit of profit.

industry

all types of businesses that are related to the same good or service

Goods

Items that are produced for sale or consumption, typically tangible products that satisfy human wants or needs.

Services

Intangible actions performed for others that satisfy needs or wants, often involving expertise or labor.

economy

a system for how goods and services are produced and distributed in society

Supply

the total amount of a product or service that is available for purchase at a given price.

Demand

the desire for a good or service backed by the ability to pay for it.

Market Equilibrium

the point where supply equals demand, resulting in a stable market price.

Surplus

the quantity supplied exceeds the quantity demanded at a given price, leading to excess supply.

Shortage

the quantity demanded exceeds the quantity supplied at a given price, resulting in excess demand.

Capitalism

Market Economy

Socialism

Mixed Economy

Communism

Command Economy

Traditional Economy

People meet their needs by bartering, hunting, trading and farming

Market Economy (Capitalism)

Individuals run businesses with little government interference. Prices are set by supply and demand

Command Economy (Communism)

Government owns the industries and controls all the business decisions.

Mixed Economy (Socialism)

Some industries and business are owned by the citizens and others are owned by the government (Like healthcare)