economics? Flashcards
resorce allocation
the assignment of resources to varies of users
how to produce
in order to make a profit, producers will look to the most cost effective methods of this production
what to produce
determined by the consumer demand. companies will produce what consumers want and need to purchase
law of demand
as the price of an item DECREASES and QUANTITY of that item consumers demanded more will increase
opportunity cost
there values of the lost alternative use to which the economy could have been allocated to
what is a want
the god and services that assist us to enjoy a good standard of living
what is a need
a good and service that people believe are necessary of life survival
price mechanism
the system where by producers supply and demand a set price in the market for goods and services
what is a market
a market is any situation where potential buyers come into contact with sellers and they make an exchange
the law of supply
as the price of an item INCREACES the quantity that will be SUPPLIED will INCREASE
equilibrium price
the price where the consumer demand the supply of good, and the supply of the good meet in the middle
factors of suply ACE
availability of resources
cost of resorces
efficiency of resorces
for whom to produce
genrally for who can afford it
consumer sovereignty
the consumer in charge when it comes to deciding where resorces are allocated in a market economy
factor demand
taste and preference
number of consumers
price allocated
expectations
