MARKETS
Consumers, rather than government planners, determine which products succeed through their purchases. This is known as this type of choice.
What is consumer choice?
You save $100 today so you can spend it next month. Money is performing this function.
What is store of value?
This thinker believed competition could prevent self-interest from simply becoming unchecked greed.
Who is Smith?
You choose a $40 dinner over a $40 concert. The concert was your second choice.
What is opportunity cost?
Education, training, and experience increase this type of capital.
What is human capital?
A system where government planners set prices, wages, and production targets is described by this word.
What is command?
A restaurant lists a burger at $12 and fries at $4, allowing you to compare their values.
What is unit of account?
This thinker focused on who owned productive resources and who received the benefits of production.
Who is Marx?
Free parking for students with perfect attendance changes behavior because it functions as this.
What is an incentive?
Machines, computers, ovens, and delivery trucks used to produce goods are this type of capital.
What is physical capital?
Private businesses exist, but government regulations and public programs also influence economic decisions.
What is mixed?
A paper certificate can be exchanged for a specified amount of gold.
What is representative money?
Smith believed this motive could encourage businesses to provide products consumers actually want.
What is profit?
Money, time, workers, and natural resources all share this characteristic that forces people to make choices.
What is scarcity?
An economist examines whether two variables consistently move in the same direction. This would be a this relationship.
What is positive?
A country eliminates many business restrictions and trade barriers. On our spectrum, it is becoming more this.
What is market-oriented?
Gold used as money differs from modern U.S. currency because gold possesses this kind of value.
What is intrinsic value?
Marx believed conflict between owners and workers resulted largely from differences between economic these.
What are classes?
You give up sleep, gaming, and seeing friends to study for an exam. Collectively, these sacrifices are your these.
What are trade-offs?
An economist simplifies reality to explain or predict behavior. The resulting representation is called this.
What is a model?
In the Soviet system, weak incentives and limited information contributed to lower output. Economists call the amount produced from available resources this.
What is productivity?
Unlike gold or a gold certificate, this type of money has neither intrinsic value nor a claim on a commodity.
What is fiat money?
Smith believed decentralized economic decisions could be coordinated largely through this signal.
What are prices?
A business asks whether hiring one additional worker will increase revenue enough to justify the cost. It is thinking at this.
What is the margin?
A person combines land, labor, and capital while accepting the risk of starting a business.
What is an entrepreneur?