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Individualism- refers to philosophy that an individual should have freedom in his own economc and political pursuits.

Democracy- a political system in which government is by the people, exercised either directly or through elected representatives.

Totalitarianism- form of gov in which one person or political party exercises absolute control over all spheres of human life and prohibit opposing political parties.

Market Economy (Free Market)- type of economy we have in the U.S. where all the goods and services are owned and produced by private producers.

Culture of the company and culture of the country.

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comparative advantage- doing something with the least sacrifice and opportunity cost.

Maximum comes because resources are unlimited. Only can have more of one good if less of another good is accepted.

In order to increase one good, how much do you have to sacrifice?

Ted (opp cost for washing one car = 3 waxing)

* wax a car in 20min (3 cars an hour)

wash a car in 60 min (1 cars an hour)

Tom (opp cost for washing one car = 2 waxing)

Wax a car in 15min (4 cars an hour)

* Wash a car in 30min (2 cars an hour)

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* (8)=24-2(8)

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* monetary plane

* real plane- lower in real terms

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* supply is always upward sloping

* demand is downward sloping

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* U.S. has the largest economic surplus

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* Price ceiling- maximum price (set by the government) ex. rent

* Price floor- minimum price ex. Minimum wage

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* Sources of growth increases when education increases.

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* Substitute Price Down – Demand Shifts Down

* Substitute Price Up – Demand Shifts Up

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* Complements Joint Consumption

* Price of Complements Up

* Demand for good shifts Down

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* If future Price goes up

* At present time demand goes up

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Primary Sources: data collected by oneself.

Secondary Sources: person performing data analysis is depends on already...