Economics
When the demand for a good or service is greater than the availability of the good or service.
This is having a limited quantity of resources to meet unlimited wants.
What is scarcity?
An economic system where all decisions are based on customs, traditions, and beliefs.
What is a traditional economy?
Goods brought into a country to be sold.
What is an import?
Refers to how many people want those goods and services.
What is demand?
Expansion, Peak, Recession, Trough, Recovery
What is the Business Cycle?
Land, Labor, Capital, Entrepreneurship (Enterprise)
What are the 4 Factors of Production?
An economic system in which the government makes all the economic decisions and sets all the prices and wages
What is a command economy?
The rate at which the general level of prices for goods and services rises.
What is inflation?
The number of goods and services that are available.
What is supply?
A severe and prolonged decline in economic activity across the economy, usually lasting years.
What is a depression?
People or businesses that make and manufacture raw materials into goods and services.
What is a producer?
An economy where both the government and individuals play roles in production and consumption
What is a mixed economy?
The total income of a country divided by the number of people living in that country.
What is GDP per capita?
The point where the quantity demanded equals the quantity supplied
What is market equilibrium?
Spending is decided through the annual appropriations process (e.g., defense spending)
What is discretionary spending?
The risk of the next best alternative foregone when making a decision
What is opportunity cost?
An economic system based on the private ownership of the means of production and their operation for profit.
What is capitalism?
The process in which businesses begin to operate internationally
What is globalization?
A reason or reward that motivates people to behave or do something in a certain way.
What is an incentive?
The process by which a central bank manages the money supply and interest rates to influence the economy
What is monetary policy?
A country or business' ability to produce more general goods than another.
What is an absolute advantage?
Little to no government involvement.
What is laisse faire?
Produced and provided by the government.
What is a public good?
The measure of how much the quantity demanded or supplied of a good responds to a change in price.
What is elasticity?
Occurs when the government's expenditures exceed its revenues in a given fiscal year
What is a deficit?