Micro economics test 1 Beau

The determining Factor goes here

The dependent Factor goes here

The relationship between 2 variables that change in the same direction, for example, product price and quantity supplied; positive relationship.

The relationship between 2 variables that change in opposite directions, for example, product price and quantity demanded, negative relationship.

the cause or source; it is the variable that changes first.

the effect or outcome; it is the variable that changes because of the change in the independent variable.

The ratio of the vertical change (rise or drop) to the horizontal change (the run) between any 2 points of the line.

the point where the line meets the vertical axis.

A particular set of institutional arrangements and a coordinating mechanism-to respond to the economizing problem.

Has to determine what goods are produced, who gets them, how to accomodate change, and how to promote technological progress.

Socialism/Communism

Government owns mmost property resources and economic decision making occurs through a central economic plan.

Capitalism

Private ownership of resources and the use of markets and prices to coordinate and direct economic activity.

pRIVATE INDIVIDUALS AND FIRMS own most of the property resources and land.

Entrepreneurs and private businesses are free to obtain and use economic resources to produce their choice of goods and services and to sell them in their chosen markets.

enables owners to employ or dispose of their property and money as they see fit. Also allows workers to try to enter any line of work for which they are qualified. Also ensures that consumers are free to buy goods and services that best satisfy their wants and that their budgets allow.

The prescence in a market of independent buyers and sellers competing with one another along with freedom of buyers and sellers to enter and leave the market.

An institution or mechanism that brings buyers (demand) and sellers (suppliers) into contact.

Use of resources of an individual, firm, region, or nation to produce one or a few goods or services rather than the entire range of goods and services.

The separation of the work required to produce a product into a number of different tasks that are performed by different workers, specialization of workers.

Money

Exchangeing good and services

social invention to facilitate exchanges of goods and services