Basic Economic Principles
This is the study of how people make choices about limited resources. Wants vs. Needs In a society.
What is economics?
This economic system is based on private ownership and profit motive.
What is capitalism?
This economic system is based on government ownership of resources.
What is communism?
This occurs when there are more goods available than consumers are willing to buy at a certain price.
What is a surplus?
This is a plan for how you will spend and save your money.
What is a budget?
This principle explains that people must choose because resources are limited.
What is Scarcity?
This is the driving force that encourages businesses to earn money.
What is profit motive?
This thinker is most closely associated with the development of communism.
Who is Karl Marx?
This principle explains that consumers influence what goods and services are produced.
Question: What is consumer sovereignty?
This is money set aside to cover unexpected expenses like car repairs or medical bills.
What is an emergency fund?
This term refers to the next best alternative you give up when making a decision.
What is opportunity cost?
This occurs when businesses compete to attract customers.
What is competition?
In this system, there is little to no private property.
What is communism?
This type of market structure exists when one company controls the entire supply of a product.
What is a monopoly?
This is the cost of borrowing money, usually expressed as a percentage.
What is interest?
These two forces interact to determine prices in a market economy.
What are supply and demand?
This type of business controls an entire market with no competition.
What is a monopoly?
In Marxist theory, this social class owns the means of production and holds economic power.
Who are the bourgeoisie?
This concept refers to the right of individuals to own and control their possessions.
What is private property?
This score reflects your creditworthiness and affects your ability to get loans.
What is a credit score?
This principle states that consumers decide what goods and services are produced.
What is consumer sovereignty?
This approach argues that the government should not interfere in the economy.
What is laissez-faire?
In Marxist theory, this social class sells its labor and does not own the means of production.
Who are the proletariat?
This is when the government collects taxes and uses the money to support programs like Social Security and welfare.
What is redistribution of wealth?
This type of investment involves owning a small part of a company and can increase or decrease in value.
What is a stock?