Economics
When making choices we must give up the best alternative activity.
what is opportunity cost?
Limited Resources and limited wants
What is scarcity?
In the Circular Flow Model, which market flows from Households to Businesses?
Resource Market
The direct trading of goods and services between people without the use of money
What is barter?
Value of the thing given up when a choice is made between two things
What is opportunity cost
Someone who buys goods and services
What is a consumer
What are the three economic questions?
1. What to produce
2. How to produce
3. For whom to produce
What is the Consumer Price Index and what does it measure?
A measure of a "basket of goods" (common consumer products) used to monitor inflation.
The desire to have a good or service and the ability to pay for it
What is demand?
What are the four various parts of the Business Cycle use to describe the economy?
Peak, Trough, Expansion, Contraction
Someone who makes goods or provides services
What is a producer
The study of how we produce goods and services and how they are allocated
What is economics
The amount of a good and service that businesses produce
What is supply
Money that has been paid to a worker for the amount of time that has been worked
What are wages or salary
Decisions made by individual are purposeful
What is Utility
Economic system in which the government controls and sets prices
What is communism/ command system
Study of unemployment, inflation and economic growth
What is Macroeconomics?
Economic system in which maintains a hands-off approach to the economy; minimal involvement
What is capitalism/free market
Model for producer's choice of allocating resources in order to produce goods
What is Production Possibility Frontier model (PPF)
A price ceiling creates a...
Shortage of goods
The four factors of production
What are
1) Labor
2) capital
3) Land/natural resources
4) entrepreneurs
The economic system in which individuals/businesses decide what, how, and how much will be produced/sold
What is capitalism
When a country/individual uses less resources to produce a good or a service compared to another country or individual
What is comparative advantage?
A system that protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
What is a Mixed Economy
What is GDP?
The total sale of all final goods and services sold and produced within a country within a year.