| A | B |
|---|
| economic wants | desire for scarce goods/services |
| Supply | the number of products offered for sale at a given price/time |
| Economic Utilities | The four types are form, time, place, and possession |
| Time utility | offering something when it is convenient for customers |
| Factors of production | natural resources, human, capital, and entrepreneurship |
| capital | these type of goods must be produced before consumer goods can be produced |
| entrepreneurship | in addition to the availability of natural, human and capital resources what you must have in order to produce g/s |
| government | some economists consider this the 5th factor of production |
| Consumer | Fewer of these goods are produced as more capital goods are formed |
| ALL | Which countries are lacking the resources they need to satisfy all of their people |
| Dictatorships | Command economy countries are often these politically |
| Privatization | When the government transfers ownership to individuals |
| Communist | These countries place a heavy emphasis on capital formation |
| Businesses | Neither this group nor consumers have the right to decide what to produce in a communist country |
| Five | Average profit is this percent |
| Profit | The primary incentive for business in the US |
| Demand | You must have the ability to buy AND desire for something to be considered a part of this |
| Unskilled | Demand is low and supply is high for these types of workers |
| Recessions | A time characterized by decreased production and increased employment |
| Inflation | This lessens the purchasing power of money |
| Economics | body of knowledge that relates to producing and using goods and services to satisfy human wants |
| Consumer Goods | These directly satisfy human wants |
| Flour | If this is used to make bread it is a capital good |
| Command | a central planning comittee makes many of the decisions about goods/services |
| Privatized | When this happens to a good the cost goes down and efficiency goes up |
| ninety-five | the % that a business uses for costs |
| Supply | This will exceed demnad in a recession |
| business cycles | a pattern of irregular expansion and contraction of GDP |
| capital formation | the production of capital goods |
| competition | rivalry among selllers for consumers dollars |
| monopoly | only one seller of a product |
| CPI | a measure of the average change in prices of consumer goods and services |
| Demand | the number of products that will be bought at a given time/price |
| economic system | The way a country decides to use its resources |
| human capital | accumulated knowledge and skills of people |
| labor | the EFFORT of people to produce goods and services |
| producer | someone who CREATES utility |
| form utility | usually only applies to goods not services |
