| A | B |
|---|
| Economics | is the study of how to meet unlimited, competing wants with limited resources. |
| 4 factors of production | land, labor, capital, entrepreneurship |
| land | everything on earth in its natural state used in the production process |
| labor | full-time and part-time workers in the economy |
| capital | Money needed to start and operate a business, Includes infrastructure and goods used in the production process |
| entrepreneurship | Skills of people who are willing to take risk and own a business, they are organizers of production |
| Scarcity | the difference between wants and needs and available resources |
| Opportunity Cost | the benefit that is lost when you decide to use scarce resources for one purpose rather than for another |
| 3 questions for economic system | What, how, for whom |
| Traditional | Produce same things that were produced by ancestors. |
| Communism | Government decides what will be produced and how resources will be allocated. Government owns most everything. Government sets production quotas. |
| Market | Consumers decide what will be produced by casting economic votes through purchases in marketplace. Price is deciding factor. |
| 4 phases of a business cycle | Peak, Recession, Depression, Recovery |
| recovery period | Moderate expansion of business, reduced unemployment, Increased consumer spending |
| Monopoly | 1 firms owns the product or industry |
| What does Swot stand for | strengths, weaknesses, opportunities, threats |
| WHICH ACT WAS ENACTED TO REDUCE, OR STOP, THE LESSEING OF COMPETITION IN THE us | CLAYTON ACT |
| What act prohibits monopolies and activites that restrain trade or competition | Sherman act |
| WHAT FEDERAL AGENCY IS RESPONSIBLE FOR REGULATING FOOD, DRUGS, AND COSMETICS | FDA |
| OPPORTUNITIES | Rapid market growth, Rival firms are complacent, Changing customer needs/tastes, New uses for product discovered (EXAMPLES OF WHAT PART OF SWOT) |
