Module 5, Lesson 1 Flashcards
a system of producing, selling and buying goods and services
Economy
the study of economies
Economics
when there are not enough resources to meet the people’s wants
Scarcity
When a resource becomes scarce, it is harder for producers to get. So products made with that resource become difficult to find. As a result, the prices for these items usually ________.
Rise
Scarcity forces us to make ______. (decide what we need and want)
Choices
the value of a thing you give up in a tradeoff
Opportunity cost
the amount of goods and services that a business is willing and able to produce.
Supply
the desire to have a good or service and the number of people who are willing to buy it at a certain price.
Demand
This law states a business will produce more of a good or service if they can charge a higher price.
Law of Supply
This law states consumers will want to buy more of a good or service when the price is low.
Law of Demand
a major incentive and is the money an individual has left after paying expenses.
Profit
3 Questions about Factors of Production
What will we sell?
How will it be produced?
For who will it be produced?
our main factors are the basis of economic resources needed to produce goods and services.
Factors of Production
What are the 4 factors of production?
Natural resources
Capital
Labor
Entrepreneurs
things from earth such as oceans, mines, and forest
Natural resources
