Core Economic Concepts
The fundamental economic problem where society has unlimited wants but limited resources.
What is Scarcity
An economic system based on supply and demand with little to no government control.
Market economy/Capitalism
An economic system where a central government authority makes all decisions regarding production and distribution.
Command economy
An economic system based on private ownership of capital, competition, and the pursuit of profit.
Capitalism
If you chose to go to the movies the day before you had a test and it left you no time to study the test grade or study time would be your________________.
Opportunity cost
The most desirable alternative given up when making a decision or choice.
What is Opportunity Cost?
Land, resources, and businesses owned by private individuals or corporations rather than the government.
Private Property
What is the name of the Novel in which Karl Marx criticized capitalism?
Communist Manifesto
An economic system where key major industries are owned or regulated by the public/government, but some private enterprise exists.
Socialism
Adam Smith would say that there is no ____________ to do hard jobs or improve efficiency in a communism.
Motivation or incentive
A general, sustained increase in prices across an economy over time, reducing purchasing power.
Inflation
The Scottish philosopher known as the "Father of Modern Economics"
Adam Smith
What is Exploitation?
When one person or a group is unfairly taken advantage of.
All type of functioning economies in the world are technically this type...
Mixed markets
If a company has to lower the prices of its new shoe model because they were selling barley any at the initial 175$ per pair price. This would be what concept at work ?
The invisible hand
What is Regulation? & Does the USA have a lot of economic regulation or is it more relaxed ?
Rules or restrictions placed on businesses and markets by a government to control economic behavior.
What is the Invisible Hand?
metaphor for how self-interest and competition naturally guide resources to their most efficient use.
answers will vary
What is Collective Ownership?
Ownership of land, factories, and resources by the public, society, or government as a whole rather than private individuals.
What is the oldest type of economic system ? Explain how it works briefly
Traditional Economy
Inflation
What are the 3 Fundamental Economic Questions?
What to produce? How to produce it? For whom to produce?
Laissez-faire
French term meaning hands off or let it be .Implies that the economy should be left alone without government intervention.
What did Marx call for as a solution to "Class Struggle"?
A revolution of the working class. Overthrow the wealthy owning class and place everything in control of the workers/state.
Marx said hat capitalist societies must first be transformed into _______________economies and then finally ____________________, meaning a theoretical classless, stateless society where all property is publicly owned.
Socialism then communism
What is an example of an event or law that regulates the economy in the United States ?
great depression programs, monopolies, giulded age etc....