Scarcity and The Science of Economics
The problem that arises from unlimited wants and limited recourses is called?
Scarcity
Land, Capital, Labor, and Entrepreneurs
An idealized system where there are no classes, everyone works for the common good, and everyone receives a portion based on what they need.
Communism
A voluntary act of buyers and sellers freely and willingly engaging in market transactions is called?
Voluntary Exchange
When you make your own decisions in the marketplace. This is called?
Economic Freedom
In economics, society must answer these three basic questions?
What to produce, how to produce, and For whom to produce
Economists use a ____________ to illustrate all possible combinations of economic output.
Production Possibility Curve (PPC)
In a __________ economy, tradition, government, and markets each answer some of the WHAT, HOW, and FOR WHOM questions.
Mixed Economy
The amount left after all the costs of production have been paid, including wages, rents, interest, and taxes is called?
Profit
Using resources wisely so that we have the greatest benefits possible. This is called?
Economic Efficiency
Unlike Scarcity which is permanent a _____________ is a temporary condition.
Shortage
What are the five consumer rights?
Safty, Information, Choice, Voice, and Redress
A __________ economy is based on capitalism, present in the US, Canada, Great Britain, and Japan, but no pure market examples.
Market Economy
Rivalry/struggle among producers or sellers of similar goods and services to win more business is called?
Competition
Providing what is fair and just (not equality). This is called?
Equity
Describe the four types of goods.
Consumers also have ______________, such as behaving ethically with producers and researching products thoroughly before making a purchase
Responsibilities
In a ___________ economy, a central authority makes the significant decisions about WHAT, HOW, and FOR WHOM to produce & controls the Factors of Production. Often has uniformity in wages regardless of individual productivity.
Command Economy
___________ describes: When people are free to do as they wish with their property, they are not afraid to accumulate, improve, use or lend it is called?
Private Property
When the government tries to reduce the impact of inflation and recession; keep our standard of living consistent. This is called?
Price Stability
Actions or activities that one person performs for another are called?
a Service or Services
The loss of potential gain from other alternatives when one alternative is chosen
Opportunity Cost
In a __________ economy, resources and social behavior are dictated by ritual, habit, or custom.
Traditional Economy
The desire to make money/make a profit, which encourages people to produce what others want is called?
Profit Motive
When the Economic goals of Freedom, Efficiency, Equity, Security, Full Employment, and Price Stability are being attained the result is?
Economic Growth