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Chapter 1
Consumers
Term | Definition |
---|---|
Command economy | Insurance that pays for damage to your car caused by colliding with another car or object |
consumer | Anyone who buys or using products |
demand | The quantity of a good or service that consumers are willing and able to buy at various prices during given time period |
Economics | The study of how economic system work |
Equilibrium Price | The price at which the quantity supplied exactly equals the quantity demanded of a product |
Market Economy | Economic system in which the people, rather than the government, own the resources and run the businesses |
Mixed Economy | An economic system that has characteristics of a market and a command economy |
Opportunity Cost | The value of your next next best alternative whenever you make a choice |
Profit | The difference between the money received from selling a product and the cost of producing that product |
Scarcity | The basic economic problem that consumers' wants are always greater than the resources available to satisfy those wants |
Supply | The quantity of a product that producers are willing and able to make available for sale at various prices over a given time period |
Traditional Economy | An economic system in which produced methods are passed from one generation to the next |