study of how we fulfill unlimited wants with limited resources
What are the 2 types of economics?
Micro and Macro
Budget of U.S.
not being able to purchase what we want
cost of 1 item in terms of another item
buying something less expensive to meet a need
What are the Factors of Production?
Natural Resources, Human Resources, Capital, and Enterpernuership
land, building, and materials that go into the production of the product; Cost=rent
people who make the product or are involved;
Money and machines; Cost=interest
person who puts together the first three factors of production (owns business)
money paid to use someone elses money
the difference between what it costs to make the item and what it is sold for
What are the 4 economic questions?
1. What will I make?
2. How will I make it?
3. Who gets to buy it?
4. How am I going to distribute my item?
What you earn back.
What are the 4 economic systems?
Traditional, Command, Free Market, and Mixed
What is Mixed a mix of?
Command and Free Market