24 terms

Economics

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Market economic system
An economy in the people own and control businesses. This is a capitalist economy where supply and demand principles determine what is produced. The government intervenes only when neccessary.
wants
things that you would like to have but are not necessary for survival
The four basic economic questions
What good or service will be produced?
How will this good or service be produced?
How much of the good or service will be produced?
For whom are you producing this?
needs
Things that are required in order to live such as air, water, shelter, and food.
capital
wealth, in the form of money or property, needed to start a business
profit
the amount of money left over after expenses are taken out
loss
when a business's expenses are more than its revenues or income
services
actions or activities that one person performs for another
investor
a person who gives money to a company with the hope of making money later
entrepreneur
a person who starts up and takes on the risk of a business
resources
anything that is used to produce goods or services
monopoly
control of a product or service by one company
corporation
a business owned by stockholders who share in its profits but are not personally responsible for its debts
trade-off
giving up one thing in return for another in the decision-making process
shortage
when there are not enough products for everyone who wants to buy them
income
money earned
scarcity
when there is not enough of a product
surplus
A quantity much larger than is needed
goods
tangible products that we use to satisfy our wants and needs
Producer
one who creates goods and services
demand
the ability and desire to purchase goods and services
supply
how much product is available to buy
consumer
one who buys and uses a product
Four types of economic systems
Market (capitalism), command, tradition based, mixed