Introduction to business
Terms
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- Needs
- things that are required in order to live
- wants
- things that comfort and pleasure to your life
- economic resources/Factors of production
- are the means through which goods and services are produced
- kinds of economic resources
- natural=raw materials supplied by nature human=people producing goods and services Capital=products and money used to produce the goods and services
- Goods and services
- Goods-things that you can physically see and touch services-activities that are consumed at the same time they are produced
- Scarcity
- not having enough resources to satisfy every need
- economic decision making
- the process of choosing which wants,among several options, will be satisfied
- tradeoff
- you give up something to have someting else
- opportunity cost
- the value of the next best alternative that you did not chose
- The decision making process
- 1.define the problem 2.identify the choices 3.evaluate the adv. and dis. adv. of each choice 4.Choose one 5.Act on your choice 6.Review on your decision
- 3 economic questions
- 1.What goods and services will be produced? 2.How will the goods and services be produced? 3.What needs and wants will be satisfied with the goods and services produced?
- Economic System
- a nations plan for answering the three economic questions. the type of system is based on how much the gov is invovled in the marketplace
- command economy
- resources are owned and controlled by the gov.