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economic system
the way in which a society uses needs and wants
some activity or function which persons do for other persons for free or payment
normative economics
focuses on economic behavior and activity as it could or should be
the study of hoe people and sociteties chose to use their resources to satisfy their wants and needs
basic economic problem and a lack of enough resources to satisfy all of peoples wants and needs
quantity of a good/service producers/sellers are willing and able to supply at each price
a value is expressed by price, as it increses so does value, price is an insentive to buy or sell
adam smith-father of economics, wealth of nations (book)
cark marks-father of socialism, socialism lead to communism, book called communist manufesto
FA Van Hayeck-wants less gov involvment
John Keens-wants more gov involvment
Dr. Milton friedman- less ogv involvment
opportunity cost
the value of the bext best alternative not chosen
quantity of a good/services buyers are willing and able to buy at each price
as value increases so does price
opportunity benefit
the value of the alternative chosen
positive econ
explains economic bahvior as it as
sellers market
high prices are an incentive for sellers to sell
buyers market
low prices are an incetive for buyers to buy
non durable goods
goods, which are perishable, consumed once, can never be used agian. ex- food and gas
micro econ
a branch of economics, which studies the behavior and activity of individuals
macro econ
a branch of economics which studies the behavior of the economy as a whole *aggregate-total*
the 2 types of incentives and define
incentive: reason for doing something
1. Monetary: paycheck
2. non-monetary: product and personal satisfaction
complimentary goods(define) give examples
goods that go together ex- PB and J
4 factors of production
Land- natural resources provided by nature ex: water, timber
Labor- human labor only. ex: any job/ occupation
capital- Monitary money, human skills and knowledge umans have, (A) real capital or capital goods ex: tools for equpitments
4 tests of elacticity 
elastic- want, relativly expensive, many substitutes, time to plan, Total Revebue test. If price goes up, TR goes down and vice versa
Inelastic- relativly cheap, need, few substitutes, urgent TR test goes in same direction