Economics 1st 9 weeks exam study guide

amberdyann's version from 2016-10-04 02:26

Section 1

Question Answer
What are the basic questions of economics?what to produce, how to produce, and for whom to produce
TINSTAAFLThere Is No Such Thing As A Free Lunch
What is the fundamental economic problem?there are not enough resources to satisfy all human needs.
What are the basic requirements needed in order to survive? Water, food, and shelter
What are the types of economics?traditional, market, mixed, command
What are the advantages of types of businesses?sole proprietorship is owned by one person and that one person gets to keep all the profit and make all the decisions. Partnership-each owner can help with financing, start-up cost, or on-going business and they can share knowledge.
What are the disadvantages of types of businesses? sole proprietorship- owner alone is responsible for all liabilities. partnership-potentially unstable, more added conflict. corporation-shareholders that control and own a significant amount, or majority, of the corporations dominant voice in the management of the buisness in comparison to share holders that do not own as much stock.
What is the law of supply?the quantity of a good supplied rises as the market price rises and falls as the price falls
What is the law of demand? the quantity of a good demanded falls as the price rises and vise vesra
What are the roles of an entrepreneur? spark plug activating and simulating all economic activity, they seek disequilibrium, future oriented.
What are the factrors of production?land, labor, capital, and entrepreneurship

Section 2