FreeEnerprise

Anything perople use to obtain their needs or wants.

People dont and cant have enough income, time, or other resources to satisfy their needs and wants

The study of how individuals and nations make choices about how to fulfill their needs and wants based on their resources

Due to limited resources, people have to make economic choices, and choices mean sacrafices. We are greedy and hate sacrafices.

anything needed for survival

all things that are not needed for survival

Something gone temmporarily

Factors of Production

Land, Labor, Capital, and Entrepreneurship

Natural resources. All things found in nature on or in water and the Earth.

It is NOT the activity of work, it is the worker's job. ex. George mowed the grass. George the landscaper is the Labor

Property, machines, tooles, and money (in the form of stocks and bonds) used to make goods and services.

The ability for individuals to start new businesses, new product techniques, and improve management

ability to produce greater amounts of goods and services better and faster

any use of land, labor, and capital with the use of science to develop new products and menthods of produching and distributing goods and services.

exchanding one thing for the use of another. often making unavoidable choices because of the problem of scarcity

the value of the next best alternative gicen up for the alternatve that was chosen. (what you could have, but did not get)

• What should be produces?
• How and how much should be produced?
• Who should produce it?
• Who should reviece it?

Adam Simith. Wealth of Nations

Karl Marx. The Communist Manifesto.

a graph that shows whats possible to produce based on our resources and what trade offs will be made.

A way in ehich a nation uses its resources to satisfy the peroples needs and wants.

Money payment for work, the abount of healhcare, education, food, and so on, that each member of an economic system recieves.

wise use of available resources so that people will be comfortable given the amount and the need of those available resources.

expansion of the economy to produce more goods, jobs, and wealth.

a goal that would allow each member of society to enjot the freesoms of enterprise, choice, and private property, and to make his or her own decisions in the market place.

a goalthat seeks to reduce the extreme ups and downs in the standard of living

material well being of an individual, group, or nation measured by the value of good and services used by the average citizen during a given period of time, usually a year.

protecting people agianse povery and supplying them with the means to provide for a medical emergency through an increasing number of government social programs directed among others, to the elderly

that which is fair and just

term used by adam smith to describe the effect of competition in guiding individuals toward working for their own self-intrese, thereby achieving the max. good for society.

economic system in ehich individuals own factors of production and decided how to use them within the limits of the law.

system in whcih individuals own the Factor of Production and decide how to use them within the limits of the law. AKA capitalism

private property, profit, and profit incentive.

whatever is ownder by individuals or groups rather than the government

desire to make money that motivates people to produce and sell goods and services that others want to buy.

money left over after the costs of production, wages, arent, intrests, and taxes have been paid.

ricalry amond producers or sellers of similar goods to wim more business by offering the lowest price or best quality

A society's calues, wants, and needs, limited supplies, scarcity, and supply and demand

the values of the society and the society's opinion on the priority of each eonomic goal.

• Tradition System: values God. does things as the all ways have been done
• Command System: Values power. does what the government says
• Market: Values the people. Does what the people want
• Mixed: Combines Market and Command. Does things within the limits of the law.
• Similar:they answer the 4 basic questions. The are based on the goals, values, and resources. They all make trade offs. They all have scarces resources

A limited one. They make laws to protect the people.

they Valued freedom and their goal was to give the power to the people

We can buy, sell, produce, make profit, and choose your job

Government can not take land away without paying fair price.

Makes business make goods and services people want to buy.

I makes higher quality and lower prices.

Adam Smith (Wealth of Nations)

Economic efficiency, Freedom, Security, Predictability,equity, growth, and innovation. These have ethnic, social, and religious elements.

Th government takes taxes. In exchange, they provide welfare, social security, health care, equpitment in emergincies.

Economic efficiency, Freedom of choice (decide where you want to work), economic growth (new ideas), high standard of living, private property

Right to won property, right to choose where to work, right to go on strick, right to buy and sell, right of free contract

open busnesses, provide goods and services, employ others, get a job, get an education, vote, know laws and consequenses.

The Government owns it

The people own it

blend of capitalism and socialism (sweeden)

businesses dont like it becuase the have to spend more money abiding by the laws.