Economics

the study of scarcity

make decisions about how they will use their resources

an alternative we sacrifice when we make a decision

the most desirable alternative given up as a result of decisions(value)

cost of expenses that are the same no matter how many units of one good are produced

cost that changes with the amount of output produced

fixed cost + variable cost

the extra or additional cost of producing one additional unit of an output

the extra revenue that results from selling one more unit of an output

a company's goal is to make as much profit as posible

the amount of money left over after all costs of production have been paid

economic system where tradition and custom govern decisions (little or no use of technology)

the government or other central authority makes all economic decisios (no competition)

economic decisions are made by individuals competing to earn a profit based on supply and demand (competition determines price)

combined elements of pure market and command economics

wrote the communist manifesto with Friedrich Engels

19th century social classes- Protetoriat(own little sell labor to capitalist) and Buregeois (capitalist owns factories and buys labor)

workers of all land unite

the foundations of communism

way of getting out of and avoiding economic crisis (economist and politicians)

the idea that government spending and tax cuts help an economy by raising demand

an economic system in which private citizens own and use the factors of production in order to seek a profit

another term used to describe the american economy

the freesom to own and use or dispose of our own property as we choose as long as we do not interfere with the rights of others (incentive to work,save, and invest (keep what we earn))

each person can CHOOSE the type of job they want to have and when and where they want to work

the driving force that encourages individual and organizations to make money

the idea that the consumer is the king or the ruler of the worker the one who determines what products will be produced

places where the prices of goods and services are determined as exchange takes place

that struggle that goes on between buyers and sellers to get the best products at the lowest prices

• 1. the idea that people will work for economic gains
• 2.the idea that the government should have a very limited role in the economy

write the wealth of nations

laissez-faire economics (to be let alone)

The invisible hand (guides the nations resources to there most productive use)

Self interset and competition