A Nation'S Plan For Answering The Three Economic Questions

Question: economic decision-making
Answer: process of choosing which wants among several options will be satisfied
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Question: producers
Answer: individuals and organizations that determine what products and services will be available for sale
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Question: economic system
Answer: a nation's plan for answering the three economic questions
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Question: economic resources
Answer: means through which goods and services are produced
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Question: needs
Answer: things that are required in order to live
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Question: scarcity
Answer: not having enough resources to satisfy every need
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Question: supply
Answer: quantity of a good or service that businesses are willing and able to provide
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Question: consumer
Answer: person who buys and uses goods and services
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Question: command economy
Answer: system in which resources are owned and controlled by the government
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Question: goods
Answer: things that you can see and touch
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Question: capitalism
Answer: private ownership of resources by individuals rather than by the government
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Question: traditional economy
Answer: system in which goods and services are produced the way they have always been done
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Question: mixed economy
Answer: system that combines elements of the command and market economies
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Question: demand
Answer: quantity of a good or service that consumers are willing and able to buy
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Question: market price
Answer: point where supply and demand are equal
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Question: wants
Answer: things that add comfort and pleasure to your life
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Question: services
Answer: activities that are consumed at the same time they are produced (things that others do for you)
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Question: trade-off
Answer: giving up on something to have something else
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Question: opportunity cost
Answer: value of the alternative you did not choose
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Question: market economy
Answer: system in which the resources are owned and controlled by the people of the country
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Question: economic choices
Answer: you can't have everything so you must choose
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Question: what are the 6 tips in the economic decision making?
Answer: 1. define the problem
2. identify your choices
3. evaluate your choices
4. choose one
5. act on your decision
6. review your decision
(DieCar)
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Question: unlimited wants
Answer: wants that are never-ending and build off each other
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Question: what are the three economic resources or also known as factors of production?
Answer: a. natural resources
b. human resources
c. capital resources
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Question: natural resources
Answer: resources that come from the earth, water, or air (oil, ,gold, copper, etc.)
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Question: human resources
Answer: people who work to produce your goods and services (people in labor)
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Question: capital resources
Answer: tools, building, equipment that are used to produce them
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Question: what is the basic economic problem for businesses and families?
Answer: scarcity
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Question: competition
Answer: a contest among sells to get consumers to buy their product (you)
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Question: freedom of choice
Answer: buy what you want and where you want
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Question: profit motive
Answer: the desire to work hard and earn money
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Question: the more demanded the _______ the price?
Answer: higher
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Question: the more competitors the ________ the price?
Answer: lower
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Question: the arrow going down to the right is the _______?
Answer: demand
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Question: the arrow going up to the right is the _______?
Answer: supply
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