Midterm - chapter 1 Flashcards
businesses offering very similar products to the same customers
competitors
services are intangible - no _____ characteristics
services are intangible - no physical characteristics
an economy in which resources are owned and controlled by the government
command economy
studies individual relationships between producers and consumers
microeconomics
- an economy in which goods and services are produced the way they have always been produced
- it is used in countries that are less developed and are not yet participating int he global economy
traditional economy
What influences supply?
- if consumers want product or service
- if there’s a lot of competition
- price
- natural disasters
What kind of economic system does the US have?
capitalism / market economy
an economy in which the resources are owned and controlled by the people of the country
market economy
What are the 4 principles that the US economic system is based on?
- Private property
- Freedom of choice
- Profit
- Competition
the amount of money available to the business after all costs and expenses have been paid
profit
How do you figure out profit?
Revenue - Expenses = Profit
Most basic needs include food, water, shelter, ______, but also good education, safety and employment.
Most basic needs include food, water, shelter, clothing, but also, good education, safety and employment.
people producing goods and services; people who work for a business
human resources
A want is a thing that adds ____ and _____ to our lives
a want is a thing that adds pleasure and comfort to our lives
What are the 3 economic systems?
- command economy
- market economy
- traditional economy
an expert in economics
economist
the quantity of a good or service that businesses are willing and able to provide
supply
not having enough resources to satisfy every need
scarcity
What influences demand?
- how many consumers want a good or service
- how many of a similar good or service is being produced
products and money used to produce goods and services
capital resources
examples of goods
- food
- clothing
- toys
- furniture
- toothpaste
the quantity of a good or service that consumers are willing and able to buy
demand
Services are really ____ satisfied through the efforts of other people
services are really wants satisfied through the efforts of other people
the process of choosing which needs and wants will be satisfied
economic decision making
economic resources, including natural resources, human resources, and capital resources
factors of production
the value of the next best alternative that you were not able to choose
opportunity cost
things you can see and touch; they are products you can purchase to meet your wants and needs
goods
activities provided for the satisfaction of others that are consumed at the same time they are produced
services
A good is a thing you can ____ and touch
a good is a thing you can see and touch
someone who takes a risk in starting a business to earn a profit
entrepreneur
only one company provides a good or service
monopoly
the ______ is the largest producer of goods and services in the world
the United States is the largest producer of goods and services in the world
capital resource also includes ____
capital resource also includes money
examples of services
- haircuts
- doctor appointments
- mail delivery
- car repair
studies the economic behavior and relationship of the entire society
macroeconomics
the freedom to make decisions independently while accepting the consequences of those decisions
freedom of choice
things that add comfort and pleasure to your life
wants
What are the 3 economic questions?
- What goods and services will be produced?
- How will goods and services be produced?
- What needs and wants will be satisfied with the goods and services produced?
- the graphic view of the supply for a product or service
- illustrates the relationship between the price of the product and the quantity businesses will supply
supply curve
what you make when you give something up to have something else
trade off
examples of needs
- food
- water
- air
- shelter
the rivalry among businesses to sell their goods and services
competition
the quantity of a good or service that consumers are willing and able to buy
demand
What are some benefits of competition?
forces businesses to improve products, keep costs low, provide effective customer service and search for new ideas
the method a country uses to answer the three economic questions
economic system
the point where supply and demand are equal
market/equilibrium price
examples of natural resources
- oil
- minerals
- water
things available to be used to produce goods and services
economic resources
anywhere that goods and services are exchanged
marketplace
the mismatch of unlimited wants and needs and limited economic resources
basic economic problem
Most of our wants are satisfied with ____ and ______
most of our wants are satisfied with goods and services
a _____ is an activity that is consumed at the time of purchase
a service is an activity that is consumed at the time of purchase
- economy based on freedom of choice
- you an make decisions independently and must accept the consequences of those decisions
free / private enterprise
We ____ need everything we see or hear about
We DO NOT need everything we see or hear about
an economy that combines elements of the command and market economies
mixed economy
examples of capital resources
- money
- buildings
- equipment
- supplies
a ____ are things that are necessary for survival
a need are things that are necessary for survival
remember that resources are ____
limited
the quantity of good or service that businesses are willing and able to provide
supply
a person who buys and uses goods and services
consumer
Wants are ____ and include computers, iPhone and designer jeans
Wants are unlimited and include computer, iPhone and designer jeans
- the graphic view of the demand for a product or service
- illustrates the relationship between the price of the product and the quantity demanded by consumers
demand curve
natural resource - raw materials supplied by ____
natural resource - raw materials supplied by nature
kind of economy where government decides what kinds of goods or services are produced
communism
human resource - _____ who produce the goods and services
human resource - people who produce the goods and services
raw materials supplied by nature
natural resources
the private ownership of economic resources by individuals rather than by the government
capitalism
things that are required in order to live
needs
What are the 3 economic resources?
- natural resources
- human resources
- capital resources
capital resource - ____, equipment and buildings used in the production of goods and services
capital resource - tools, equipment and buildings used inthe production of goods and services
examples of wants
- iPhone
- large house
- luxury car
examples of human resources
- farmers
- factory workers
- sales people
What sets demand?
if consumers want to purchase it or not
