Podcast
Questions and Answers
Market demand is the sum of individual ______.
Market demand is the sum of individual ______.
demand
A ______ is a tangible good that can be seen and felt.
A ______ is a tangible good that can be seen and felt.
commodity
Essential goods are considered basic needs, such as ______ and medicine.
Essential goods are considered basic needs, such as ______ and medicine.
food
______ goods are items that people may do without, like luxury cars or perfume.
______ goods are items that people may do without, like luxury cars or perfume.
The circular flow model illustrates the flows in the ______ market.
The circular flow model illustrates the flows in the ______ market.
______ cost refers to the value of the next best alternative when a decision is made.
______ cost refers to the value of the next best alternative when a decision is made.
Public finance involves the activities of ______.
Public finance involves the activities of ______.
Factors of production include land, labor, capital, ______, and entrepreneurship.
Factors of production include land, labor, capital, ______, and entrepreneurship.
Flashcards
Market Demand
Market Demand
The total quantity of a good or service that all consumers are willing and able to buy at a given price.
Commodity
Commodity
A raw material or primary agricultural product that can be bought and sold, such as oil, wheat, or cotton.
Factors of Production
Factors of Production
The resources used to produce goods and services. These include land, labor, capital, and entrepreneurship.
Demand Curve
Demand Curve
A graph that shows the relationship between the price of a good or service and the quantity that consumers are willing to buy.
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Herfindahl-Hirschman Index
Herfindahl-Hirschman Index
A measure of market concentration, calculated by squaring the market share of each firm in a market and summing the results.
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Consumer Goods
Consumer Goods
Goods that are purchased by individuals for their own use and enjoyment, such as clothing, food, or entertainment.
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Opportunity Cost
Opportunity Cost
The value of the next best alternative that is given up when a decision is made.
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Circular Flow Model
Circular Flow Model
A diagram that shows the flow of goods, services, resources, and money between households and businesses in an economy.
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Division of Economics
- Consumption
- Public finance
- Production (process of producing goods)
- Distribution
- Exchange
Factors of Production
- Capital (monetary assets)
- Labour (human resources)
- Entrepreneurship
- Land (economic resources)
Goods and Services
- Goods (tangible items)
- Services (intangible outputs)
Classification of Goods
- Consumer goods (everyday items)
- Essential goods (basic needs)
- Capital goods (used in production)
- Luxury goods (not necessities)
- Economic goods (scarce resources)
Production
- Services (actions performed)
- Producers (individuals or entities offering goods/services)
- Consumers (users of goods/services)
Distribution
- Marketing of goods and services
- Exchange of goods and services
Consumption
- Proper use of economic goods
- Government involvement (public finance)
Economic Resources
- Factors involved in production
Circular Flow Model
- Illustrates the flow of production
Public Market
- Households
- Businesses
Production Possibilities Frontier
- Outcome/production (consumer/capital goods)
- Opportunity cost (value of choices)
Basic Economic Decisions
- Consumption, production, distribution, and growth over time
Branches of Economics
- Positive economics (fact-based)
- Normative economics (opinion-based)
- Demand (wants and needs)
- Individual demand (quantity per person)
Market Demand
- Summation of individual demands
Commodities
- Tangible goods/services
Types of Commodities
- Agricultural commodities
- Energy commodities
- Metal commodities
- Livestock commodities
Demand Curve
- Useful for businesses
Demand Data
- Organized charts
Market Index
- Herfindahl-Hirschman Index (measures market concentration)
Socioeconomic Factors
- Quality of life
- Income
- Education
- Skills
- Occupation
- Sustainability
Factors Affecting Business
- Economic condition
- Social environment
- Government
- Economic changes
- Political changes
- Technological changes
- Environmental factors
- Viability (ability to survive)
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