Economics Flashcards
Define Economics
Makes an analysis of how to use humans make choices to satify them. Also, helps maximize and achieve more growth in materials, goods, etc.
What are goods?
A good is an item that can be a want or a need like a laptop, phone, car, etc.
What is a service?
A act of kindess someone does for another like a waiter, teacher, etc.
3 types of economies
Free market economy, Command economy, and Mixed economy
Define Scarcity
Not enough quantity of a product for consumers so the demand of it goes up
Define Oppurtinity Costs
It is the next highest valued alternative that is given up when or once a choice is made by the individual or society.
3 basic economic questions
What to produce?
How to produce?
From whom to produce?
4 key elements of economics
Labor
Land
Capital
Consumption (Demand)
Define Free Market Economy
When the goverment as 0 intervention with the citizens for companies, trade, etc.
In countries like Singapore, Canada, etc
Define Command Economy
The goverment controls and owns all companies and bussines
In countries like China, Russia, etc
Mixed Economy
The goverment set ristrections on citzens and both own companies and bussines
In countries like USA, Bahrain, etc
