american free market economy Flashcards
what is the story of economics?
having access to limited resources to make choices about using those resources in the marketplace.
what is scarcity?
lack of goods/resources and services.
what does it mean?
having not enough resources and services.
what is the opposing cost?
when people make choices in the marketplace. it is two choices in one.
what is the 4 types of resources?
natural, human, capital, and entrepreneurship resources.
what is the definition of a resource?
factors of production like land, labor, or money.
what is production?
the process of creating goods or services, which is production.
what is consumption?
when consumers purchase and use the good or service.
what are the 3 economic questions that all countries must answer?
- what will be produced?
- how will it be produces?
- for whom will it be produced.
what are 4 types of economic systems
traditional, free market, mixed, and command economy.
