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Related Flashcards
Cards In This Set
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The STUDY of how people produce, distribute and consume things to meet their basic needs.
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Economics
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Existence of LIMITED resources to meet our unlimited wants.
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Scarcity
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Giving up the OPPORTUNITY to satisfy other wants.
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OPPORTUNITY Costs
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People do what their PARENTS did; Economy Based on Customs.
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TRADITIONAL Economic System
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The government TELLS people what to do, how to make things and how much to make.
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COMMAND Economy
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Producers and consumers decide.
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Free Market Society
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A person or business that SUPPLIES GOODS and SERVICES.
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Producer
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People and businesses that USE GOODS and SERVICES to satisfy their needs and wants.
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Consumer
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ITEMS PEOPLE MAKE and USE such as toys, food and cars.
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Goods
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THINGS THAT PEOPLE DO for OTHERS. Example a doctor provides medical care.
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Services
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The ACT of MAKING or PROVIDING goods or services.
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Production
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The ACT of USING goods and services.
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Consumption
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The DIFFERENCE between the producers COSTS and the SELLING PRICE.
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Profit
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The AMOUNT of GOODS and SERVICES that producers MAKE.
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Supply
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The AMOUNT of GOODS and SERVICES consumers are willing to BUY.
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Demand
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