LG7 Flashcards
3 types of resources
- Natural resources
- Human resorces
- Capital resources
to produce or to make things
Production
very important part of economics in the modern world
Money
study of power, a power that humans exerts over another
Politics
It is a social institution that organizes the production, distribution, and consumption of goods and services
Economics
any establishment who has a bearing on society
Economic institution
durable systems of established and embedded social rules and conventions that structure social interactions
Institutions
Two way on how economic institutions are formed
- Formal
- Informal
Movement of resources from where they are found or produced
Distribution
tranfer of goods between individuals or groups
Exchange
3 types of systems of distribution
- Reciprocity
- Redistribution
- Market transactions
two individuals or group pass good back and forth
Reciprocity
goods or services are passed as gifts without the need for a payment
Reciprocity
commodities are contributed by all members of a social group to a common pool from which they are often distributed
Redistribution
Exchange of goods and services through a market
Market transaction