| Question |
Answer |
| What is the fundamental economic problem? |
SCARCITY |
| What is SCARCITY? |
SCARCITY is the condition that results from society not having enough resources to produce all the things people would like to have |
| Economics? |
Economics is the study of how people deal with scarcity. |
| Opportunity cost |
Opportunity cost is the value of the option that you do not choose. |
| market economy |
An economy in which peopke and firms act in their own best interest to answer the what, how and from whom. |
| taditional economy |
An economy in which the allocation of resources and nearly all other economic activity stems from ritual, habit or custom. |
| Command economy |
An economy in which a centralk authority makes the most of the what, how, and for whom. |
| What does TINSTAAFL mean? |
TINSTAAFL is a term that economist call "there is no such things as a free lunch" |
| Why do economist use the TINSTAAFL term? |
They use it because producers need to figure out what, how or from whom to produce. |
| whafour factot are the four factors of production? |
Land, capitol, labor, and entrepreneurs |
| What does the term land refer to in the four factors of production? |
the "gifts of nature" or natural resourses. Land is NOT created by humans; it can be forests, deserts, herdsm, cattle, or sunshine, etc. |
| What does the term capitol refer to in the four factors of production? |
Tools, factories, machinery, factories used in the production of goods and services. This should not be confused with capitol finance which is money used to buy tools, machinery, factories, etc. |
| What does the term labor refer to in the four factors of production? |
people with their efforts, abilities and skills. This group does not enclude entrepreneurs. |
| What does the term entrepreneurs refer to in the four factors of production? |
Are the risks taker who provide the land, labor and capitol They are often though as the driving force behind the economy. |
| What is the circular flow of goods and services? |
|
Poultry
