Economic Decision Making
The phenomenon that drives economic decision making because resources are limited.
Scarcity
The different elements used by producers in order to produce their good or service.
Factors of Produciton
The amount of money a consumer must spend to purchase a good or service.
Price
This type of unemployment refers to the natural phenomenon that occurs when people are out of work but searching for jobs over a short period of time.
Frictional Unemployment
Losses from an opportunity not taken in an economic decision.
Opportunity Cost
The acres of a farm would be an example of the factor of production.
Land
The use of new tools, machines, or methods to innovate the amount of goods or services supplied by a producer.
Technology
This type of unemployment is when businesses restructure and need to make layoffs or downsize.
Structural
A process to compare possible costs to gains to determine whether the decision is worthwhile.
Cost-Benefit Analysis
The workers on an assembly line of a factory is an example of this factor of production.
Labor
The relationship between how much of a good or service is available and how much people want to buy it.
supply and demand
This type of unemployment occurs when the economy experiences downturn or recession
cyclical
If someone has an opportunity to either save 5,000 dollars or invest 5,000 dollars and they choose to save the money, but the investment value ends up rising to 10,000 dollars what is the opportunity cost?
A. saving 5,000 dollars
B. 5,000 dollars not made by investing
B. the 5,000 dollars not made by investing.
The ovens needed to run a pizzeria is an example of this factor of production.
Capital
When people have demand for a product, they would purchase it from this market.
Product market
These are policies made by a central bank like the Federal Reserve to relieve unemployment by lowering interest rates or printing money.
Monetary Policy
Scarctiy occurs because people have unlimited what?
wants or demands
The risk taken to start producing a good or service in order to make a profit is an example of this factor of produciton.
entrepreneurship
factor market
The policies made by the government to relieve unemployment by creating jobs and programs using tax money.
Fiscal Policy