Economics Review :: Economics Cheat Sheet

stintings ReviewChapter 1 department 11. Economics study of how individuals & nations make choices nigh ways to use hardly resources to fulfill their needs & wants.2. Scarcity state in which people siret & cannot have enough income, time, or other resources to satisfy.3. Factors of yield resources of land, labor, capital, & entrepreneurship utilize to produce 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 reservation unavoidable choices because of the problem of scarcity.2. Opportunity cost value of the next surmount alternative disposed(p) up for the alternative that was chosen.Section 31. economic system all activity 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. Values b eliefs or characteristics that an individual or assembly considers important.Chapter 2Section 11. Traditional economic system economic systems are based on customs, beliefs, & ways of doing things that have been passed down from extension 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 notes payment for work, the amount of health care, education, food, & so on, that from each one 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 deep down the limits of the law market economic system & free enterprise system.2. let go of enterprise system individuals own the factors of production & decide how to use them indoors legal limits.3. Profit money left after all the cost 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 emulation among producers or sellers of similar goods to win more business by fling the lowest prices or better quality.Section 31. Standard of lively material well-being of an individual, group, or nation measured by the add up value of goods & services used by the average citizen during a given period of time.