Intro to Economics Definitions
This term refers to the total amount of a specific good or service that is available to consumers.
Supply
This term refers to the lowest possible amount that you must be paid for completing work.
Minimum Wage
In a capitalist society, the means of production are controlled by the (blank)
People/Individuals
Name one effect that high levels of poverty can have on a specific region.
Higher crime rates, lower life expectancy, more government intervention
This term refers to the value of the next best option you are giving up when you make an economic decision.
Opportunity Cost
This term refers to consumer's desire to purchase a specific good or service.
Demand
A rational decision maker makes decisions when the benefits outweigh the (blank)
Costs
In this economic system, the consumers set the prices by choosing to purchase goods and services at different prices.
Capitalism/Free Market
Provide one factor that contributes to increased levels of poverty in a specific region.
Lack of education, lack of healthcare, job market changes, wage gaps.
This term refers to the market for labor and other materials necessary to produce finished goods.
Factor Market
This term refers to any place where goods and services are bought and sold.
Markets
This concept refers to the idea that there are not enough resources to satisfy unlimited wants, meaning consumers have to choose the best way to use their resources.
Scarcity
In this economic system, the government sets prices and controls supply.
Socialism/Command Economy
This term refers to the income level that a person must meet in order afford basic necessities.
Poverty Line
Interest
This term refers to a consumer's ability to obtain goods or services before payment, based on the trust that payment will be made in the future.
Credit
All economic decisions carry (blank), which are known uncertainties that influence decision making.
Risk
Provide one potential issue that a mixed economy can face.
High taxes, potential for government overreach.
American capitalism has led to some individuals and families becoming far richer than the rest of the citizens of the United States. We refer to this as (blank)
Wealth Inequality
Current Event: The current administration of the United States has recently imposed high amounts of this type of tax, which is a tax on imported goods.
Tariffs
This term refers to any asset obtained for cost that is expected to provide value in the future that exceeds the initial cost.
Based on the amount of money that you earn, you are placed in a (blank). This determines how much of your income is given to the government.
Tax Bracket
This French term refers to the idea that the government should not be involved in the economy.
Laissez Faire
Through this process the nations of the world become more interconnected and interdependent. One effect of this process has been jobs typically performed in America being outsourced to firms overseas.
Globalization
This type of unemployment occurs when the jobs available do not match the skill set of the available workforce.
Structural Unemployment