what is land
resources form the environment ( generally ). - water- wood
what is labor
work force or the worker. - the chef
what is capital
machinery, what produces the product- oven- robot.
what is enterprise
The Business, Company or CEO- Elon Musk- Steve Jobs
what is scarcity
a problem where unlimited wants are met with the worlds limited resources.
what is opportunity cost
the value o something that is lost because you chose an alternative course of actionFor example. If you have $20 and could got to the zoo for $20 or see a movie with a $20 ticket. If you chose to go to the movies, the zoo would be the opportunity cost because it's what you lost.
what is economics
the study of how wealth is created and/or disturbed. It's also how and why decisions are made based on the use of economic resources.
needs vs wants
a need is something you have to have in order to survive. A want is something you would enjoy having because it makes you happy. However you can survive without it.For example. You can choose to have either water for life or a dog for life. The water is the need and the dog is the want.
What is equilibrium?
the point in a graph where the price of both the demand and supply are the same.
what is the law of demand
the law of demand states the amount of a product a person wants to buy is influenced by Price, price of substitutes, complimentary product price, income levels and taste vs preference.
what is the law of supply
the price of the product increases, making producers produce more in hopes of profit. Factors that affect these are high price, factor production price, related goods prices, technology and weather.
what does the price mechanism determine
- what to produce- the price of products that are to be sold
what is market
a situation when a buyer interacts with a seller. there is also a mean of exchange.
what are goods and services
goods are physical objects and services are services are intangible
what does the demand curve show
the amount the buyers are willing to purchase from the price
what does the supply curve show
relationship between price and quantity supplied
what are the three economic questions
What to produce? How to produce? For whom to produce?