buisness and econmics Flashcards
economics definition
the consumption of goods and services.
law of demand definition
when the price of product increase the demand for the product will decrease.
law of supply definition
as the price of the good and service increase the quantity of the good and service that suppliers offer with increase.
relative scarcity definition
- relative scarcity is the relationship between supply and demand
- the gap between limited resources and the demand for the product.
difference between needs and wants
a need is something you need to survive . a want is something you can have to improve your quality of life. a need would include food, water, clothes, shelter and medicare while a need is everything else.
equilibrium prices
a balance of demand and supply factors
opportunity cost
the lost of other alternatives when another alternative is chosen.
what is a market
an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a countries individual citizens and businesses
consumers sovereignty
the situation in the economy where the desires and needs of consumers control the output of producers
economic resources land
the part of the earths surface were water isn’t
economic resources labour
work especially physical work
economic resources capital
machinery, computers, factories man made items
economic resources enterprise
a business or company
factors that affect demand
price of product, consumers income, price of related goods, tastes and preference goods of consumer, number of consumers in the market.
factors that affect supply
price of goods, price of related goods, future expectations, input cost, number of suppliers and government polices.
