Answer 2
Scarcity is the restricted availability of products, which may be in demand in the market. Scarcity also involves an individual's absence of reserves to buy products. It says that community has inadequate productive sources to satisfy all human wants and needs.
Answer 3
Economic freedom or financial freedom is the strength of people of a society to take financial actions. This is a term done in economic and policy discussions as well as in the conception of economics. In an economically free community, individuals are free to work, produce, use, and invest in any way they want.
Answer 4
Capital resources involve devices, appliances, buildings, and machinery. However, any good used by a business to provide other goods and assistance is organized as a capital source, including ordinary items such as shipping boxes, inventory forms, pens, or file governments.
Answer 5
The influence on your savings and investments. Inflation is bad news for savers, as it consumes the purchasing power of your money. Low-interest rates also don't help, as this makes it even harder to find gains that can keep pace with increasing living costs. Higher inflation can also push down the price of bonds.
Answer 6
In a controlled economy, the government controls important features of economic generation. The government determines the means of production and owns the enterprises that produce goods and services for the public. The government prices and provides goods and services that it thinks interests the people.
Answer 7
Entrepreneurs maintain a central position in a business economy. For years, economists surveyed entrepreneurship as a small part of economic activity. But in the 1800s, the Austrian School of Economics was the first to identify the entrepreneur as the person having the central role in all financial activity.
Answer 8
The traditional economy is a new economic system in which traditions, customs, and faiths help shape the goods and the services the economy provides, as well as the rules and manner of their delivery. Countries that use this type of economic system are usually rural and farm-based.
Answer 9
A market economy is a kind of economic system where stock and demand control the economy, preferably than government interference. The judgments about the allocation of those sources are made by individuals without government interference.
Answer 10
A consumer price index (CPI) includes variations in the price level of a market basket of consumer goods and services bought by households. The CPI is an analytical estimation created using the prices of a sample of elected items whose prices are obtained annually.
Answer 11
At the most primary level, what banks do is somewhat simple. Banks take deposits from consumers, increase capital from investors or bankers, and then use that money to make loans, buy protection and give other economic services to customers.
Answer 12
U.S. economy generates is scaled by GDP. When the GDP growth rate turns contrary, the economy starts a collapse. When the economy deals for years, it's named a depression. Learn the distinction between depression and inflation.
