Question | Answer |
Goods | is a physical items such as food, clothing, cars, and houses. |
Services | is a activities people do for a fee. Some examples of services are car repairs,
house painting, and concerts. |
A consumer | is a person who satisfies a want or a need by buying a good or service. |
A Producer | is a person or business who uses resources to make goods or provide services. |
A natural | resource is a gift of nature,
part of the natural environment such as water, trees,
or minerals. |
Human resources | are the people who produce the goods and provide the services. |
Capital
resources | are the money and property—factories,
tools, bridges, machines, and other items used to produce goods and services. |
Scarcity | it means that people need and want more
than the available resources can provide. |
Opportunity cost | is the value of your second choice,the next best alternative. |
The supply | is the quantity of a good or service offered for sale. |
The demand | is the quantity of a good or service consumers are willing and able to buy. |
A profit | is the amount left after costs are subtracted from the price. |
Every economy functions by answering the four basic economic questions: | (1) what to produce, (2) how to produce, (3) how much to produce, and (4) for
whom to produce. |
This
decision answered the economic question
of | what to produce |
When all these plans are complete, the group has decided | how to produce |
The economic concept
of scarcity affects their decision of | how much to produce |
who they are producing for | they need to know more about the consumers. |
Traditional economy | customs,habits, and beliefs determine how the four.
basic economic questions are answered. |
Command economy | is the government controls the economy and answers the four basic economic questions. |
Market economy | individuals answer the four basic economic questions based on supply and demand. |