Economics Review :: Economics Cheat Sheet

Economics ReviewChapter 1Section 11. Economics study of how individuals & nations make choices about ship canal to physical exercise scarce resources to fulfill their needs & wants.2. Scarcity state in which people dont & cannot have enough income, time, or other resources to satisfy.3. Factors of production resources of land, labor, capital, & entrepreneurship utilise to leaven goods & services.4. Entrepreneurship ability to start new businesses, to introduce new products, & techniques.Section 21. Trade-off exchanging one thing for the use of another, often making needful choices because of the problem of scarcity.2. Opportunity cost value of the next best alternative given up for the alternative that was chosen.Section 31. Economy all performance in a nation that affects the production, distribution, & use of goods & services.2. Economic model simplified representation of the real world which shows peoples reactions to changes in the economy theory.3. value beliefs or characteristics that an individual or group considers important.Chapter 2Section 11. Traditional economic dust economic systems are based on customs, beliefs, & ways of doing things that have been passed down from generation to generation.2. Command economic system the government controls the factors of production & makes all decisions about their use also called controlled economy.3. Market economic system individuals own the factors of production & make economic decisions through free interaction government doesnt intervene.4. Distribution of income money payment for work, the amount of health care, education, food, & so on, that each person receives distribution of goods & services among all members of an economic system.Section 21. Capitalism private individuals own the factors of production and decide how to use them at heart the limits of the law market economic system & free enterprise system.2. Free enterprise system individuals own the factors of production & deci de how to use them within effectual limits.3. Profit money left after all the costs of production wages, rent, interest, & taxes have been paid.4. Profit incentive desire to make money that motivates people to produce & sell goods & services that others ant to buy.5. Competition rivalry among producers or sellers of similar goods to win more business by offering the lowest prices or come apart quality.Section 31. Standard of living material well-being of an individual, group, or nation measured by the average value of goods & services used by the average citizen during a given period of time.