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Define the term ECONOMICS:
The distribution or use of limited goods for the purpose of satisfying the population’s infinite desires and necessities.
What is the first factor of production?
Land/Real Estate
What is the second factor of production?
Labor/Manual Labor/Workers
What is the third factor of production?
Capital/Money
What is the fourth factor of production?
Technology/Computers
What is the fifth factor of production?
Entrepreneur/Jeff Bezos
What is the fundamental problem of economics?
People have unlimited wants and needs, but there are limited resources.
What are three solutions to this fundamental problem?
Communism, Socialism, and Capitalism
Two examples of capital goods?
Wood Lathe and Work Computers
Two examples of consumer goods?
Food and Clothes
Two examples of services?
Tax Consultants and Teaching
What is the formula which makes up the GDP?
Consumer goods + Investment Goods + Government Services + (Export - Import) = GDP
What is another name for per capita GDP?
Per person GDP
What are three reasons a nation may have low GDP?
Overpopulation, Inadequate capital, and Inadequate Resources
The characteristic of economic resources being limited:
Scarcity
The quality of life people enjoy based on material goods the people own.
Standard of Living
Money, tools, machinery and buildings used to produce other goods and services.
Capital Goods
The sum of all goods produced by a country at home and abroad:
GDP
Places and situations in which people buy and sell goods.
Market
Electric companies are example of:
Natural Monopoly
The study of economic activity and interaction between major sectors.
Macroeconomics
Economy determined by freedom in decision making. A _______ economy
Market
A person who organizes and manages a business undertaking. The use of their skills to create a successful business:
Entrepreneur
Goods bought by consumers for their own personal needs and wants:
Consumer Goods
An economy where few people make the decisions, planning is a chief characteristic:
Command Economy
Kellogg’s, Post and General Mills are and example of an:
Oligopoly
Microsoft was an example of a:
Monopoly
Government should not interfere with economic activity of it’s citizens:
Laissez Faire
The U.S. has an example of this type of economy:
Mixed Economy
The cost of giving up one thing in order to get another:
Opportunities Cost
The choices available to producers for producing goods with limited resources:
Production Possibilities
The study of the activity of individual units in the economy:
Microeconomics
Where 1 company dominates the market of a product.
Monopoly
A companies earning after paying all expenses:
Profit
Refers to the balance of military goods and food which a country may produce:
Guns and Butter
TINSTAAFL:
There is no such thing as a free lunch
