4. What Are The 3 Economic Questions That Every Society Must Face?

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Scarcity - The problem that resources are always limited in comparison with the number and variety of wants people have
Free Enterprise - Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
Needs - Basic requirements for human survival
Profit Motive - the driving force that encourages individuals and organizations to improve their material well-being
Wants - Desires that can be satisfied by consuming a good or service
Competition - A common demand by two or more organisms upon a limited supply of a resource; for example, food, water, light, space, mates, nesting sites. It may be intraspecific or interspecific.
Trade Off - Giving up one thing for another
Stock - A certificate
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What are the benefits of studying economics? helps us understand the economic world understand a free enterprise system: where people and privately owned businesses rather than the government make the majority of the economic decision become a better economic decision maker

2. What are the 3 economic questions that every society must face?
Who consumes the goods and services produced in a society
How should goods and services be produced?
What goods and services should be produced?

3. Describe how scarcity is important to the study of economics.
Scarcity is the condition where unlimited human wants face limited resources.
When we study economics we must keep in mind that our focus is on how people satisfy wants with scarce resources.
One must understand just how scarce particular resources our in order to understand how crucial they are in fulfilling people’s desires
Just because something is scarce does not mean it has value. Dinosaur Feces is very scarce but that does not mean

4. List 3 goods and 3 services.

Lawn Trimming
A brand New Car
A house
Hair and Beauty
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Why are entrepreneurs important in a market economy?
They add new ideas and new goods/services to the economy. They combine land, labor, and capital to produce new products.

12. In what way do consumers exercise their powers in our economy?
They consume goods, which by their definition, is what they do. They input $ in the system and generate demand for products. Contributing their money to a given company or good is in essence placing a vote for that company or good’s financial success.

13. What are roles the American Government plays in the economy?
The protect consumers from making decisions that can be potentially harmful to themselves. They provide services such as education or health care to improve the greater good of all citizens. They regulate monopolies and large companies from complete ownership of a particular type of good or service. They also promote their own national economic goals for citizens to follow.

14. What are some advantages of starting a corporation?
That corporation is now legally considered as a person and can take on lawsuits and own property. The individual owners or the partners no longer need to take the legal blame for their company. This also eases the transition to new leaders that were not a part of the original

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