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| The study of how individuals, businesses, and nations make things, buy things, spend money and save money. |
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| A person who studies economics. |
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| Scarcity exists when there is not enough of something to satisfy demand due to limited resources. |
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| Things (items) that people make. For example, toys, clothes, cars, and houses are all considered goods. |
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| Things that people do for others. For example, people who provide a service include electricians, teachers, barbers, doctors, etc. |
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| Fundamental economic questions |
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1) what should be produced?
2) how should it be produced?
3) who gets what? |
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| the way in which a society answers the three basic economic questions |
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| the three basic questions are answered according to tradition & custom. Children do what their parents did. |
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| When farmers only grow enough crops to feed themselves and their families. Almost everything grown is intended for use by the family or village. |
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| Goods produced in or near the home, such as weaving your own cloth, making your own tools, furniture, etc. |
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| (also known as capitalism, free-market ), people are free to go into business for themselves, they use their capital (money) in order to make a profit, little interference from the gov't, based on supply & demand |
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| amount of money made after the costs of running a business is paid |
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| how much of a particular good or service producers are willing to make and sell for a given price. |
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| how much of a good or service consumers are willing to buy for a given price. |
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| determines how much of goods or services are made and at what price they are sold. |
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| when farmers grow crops to sell to others for cash or profit |
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| when goods are produced in factories for sale by businesses to consumers and other businesses |
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| individuals that purchase goods or services |
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| developed by Karl Marx, all factors of production and the three basic questions are answered by the government through a central planning authority, all share equally |
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| wrote the Communist Manifesto that became the basis for communism |
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| an economic system in which the most important businesses producing goods are owned by the government, and the government provides certain essential services like education and health care. |
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| When economies blend together features from several economic systems, especially free-enterprise & communism |
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