|Economics||study of how we fulfill unlimited wants with limited resources|
|What are the 2 types of economics?||Micro and Macro|
|Macro||Budget of U.S.|
|Scarcity||not being able to purchase what we want|
|Opportunity Cost||cost of 1 item in terms of another item|
|Trade-Off||buying something less expensive to meet a need|
|What are the Factors of Production?||Natural Resources, Human Resources, Capital, and Enterpernuership|
|Natural Resources||land, building, and materials that go into the production of the product; Cost=rent|
|Human Resources|| people who make the product or are involved;|
|Capital||Money and machines; Cost=interest|
|Entrepreneurship|| person who puts together the first three factors of production (owns business) |
|Interest||money paid to use someone elses money|
|Profit||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?
|Profit Margin||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|