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producers*
individuals and organizations that determine what products and services will be available for sale*
Mixed Economy*
combines elements of command and market economy*
marketprice*
the point where supply and demand are equal*
entrepreneur*
risk takers who use resources in an entirely new way to create a new product or service*
economic system*
a nations plan for answering the thress economic questions*
Command Economy*
resources are owned and controlled by the government*
Dollar Voting**
consumers choices influence company’s production decisions**
products that consumers buy will tend to be produced in the future.
demand*
the quantity of a product or service that consumers are willing and able to buy at a particular place*
supply*
the quantity of a product or service that businesses are willing and able to provide*
5 Features of the US Market Economy
Private Enterprise
Private Property
Profit
Competition
Freedom of choice
4 Economic Systems**
Command
Market
Traditional
Mixed**
3 Economic Questions**
What to produce?
How to produce?
What needs and wants to satisfy?**
Decision Maing Strategy
Define a problem
Identify choices
Evaluate choices
Choose one
Act on your choice
Review your decision
trade off
when you decide on one alternative, you give up something else
opportunity cost*
the value of the next best alternative that you did not choose (what is being given up?*
scarcity*
the conflict between unlimited wants with limited resources*
Factors of Production/Economic Resources**
the means through which goods and services are produced**
service*
activities that are consumes at the same time they are produced*
goods
things that you can see and touch (products)
wants*
things that add comfort and pleasure to your life*
needs
things that are required in order to live
