Economic Incentives
Something that motivates a person to do something.
Incentives
The study of how we make decisions in a world in which resources are limited.
Economics
Any structure that allows buyers and sellers to exchange types of goods, services and information.
A market
What are the two parts of demand?
2- the ability to pay
Bull market
Stock prices rise and investors expect economic growth.
Tax breaks to encourage consumers to spend on certain items
Tax credits
Scarcity
Perfect competition.
Exists in theory, products are similar and producers sell the same products to prevents rising prices among businesses.
The quantity of a good or service that buyers are willing and able to buy at all possible prices during a certain time period.
Demand
Bear market
Stock prices fall and investors expect economic decline
Government incentives that provide money in order to encourage people to do something.
Subsidies
An economy based of custom and traditional beliefs.
Traditional economy
A few very large sellers dominate the industry.
Oligopoly
If people think a product will run out they buy more now. This is an Example of..?
Consumer expectations
What is the unemployment rate?
The percentage of people in the civilian labor force who are not working but currently looking for work.
An Example of a negative incentive
Fines, fees, demotions, or tickets
Command economy.
Government controls the means of production.
Only one seller of a particular product dominates the market.
Monopoly
Law of Demand
This takes place when the Real GDP goes down for a temporary amount of time.
Recession
What is an economic incentive ?
Financial motivations for people to take certain actions.
Mixed economy
Mix of command and market economies characteristics.
An Example- of natural Monopoly
gas network
If peanut butter and ice cream get expensive, people may buy less chocolate to go with them. This is an example of..?
Price of complements
Depression
When large numbers of people are out of work, there are shortages, and capacity in manufacturing is exceeded