Economic Terms
The study of people and choices.
What is economics?
The study of the overall all economy.
What is macroeconomics?
Anywhere people exchange goods and services.
What is a market?
An economy where the decisions about products and prices are made by the government.
What is a planned or command economy?
A country's GDP divided by the number of people in that country.
What is GDP per capita?
Limited resources and time.
What is scarcity?
The total value of goods and services produced in a country over a period of time.
What is Gross Domestic Product?
When prices go up, demand goes down. When prices go down, demand goes up.
What is the Law of Demand?
An economy where decisions about products and prices are made by businesses and consumers.
What is a market economy?
The study of the social, emotional, and psychological factors that contribute to decision making in an economy.
What is behavioral economics?
Land, labor and capital.
What are the factors of production?
The percentage of people actively seeking employment but can't find a job.
What is unemployment?
When prices go up, supply increases. When prices go down, supply decreases.
What is the Law of Supply?
An economy where decisions about products and prices are made by a combination of businesses, consumers, and the government.
What is a mixed economy?
The things used to produce goods and services faster, better, and cheaper.
What is technology?
The cost of making a choice or doing something that prevents you from doing something else.
What is opportunity cost?
The rate of increase in prices over a period of time.
What is inflation?
When the supply curve and the demand curve intersect.
What is the price equilibrium?
Government payments to encourage or protect a certain type of economic activity. They lower the cost of production and encourage producers to stay in the market.
What are subsidies?
How a product, service, or idea is presented will affect how it is perceived.
What is framing?
The tendency for some people to choose not to participate rather than risk losing.
What is loss aversion?
Consumer spending, business spending, government spending, and net exports.
What are the four components of GDP?
An example of goods or services that should not be subject to the forces of supply and demand to ensure an equitable outcome?
What are fire and ambulance services?
The idea that free markets can motivate people to act in their own self interest and unintentionally benefit society at the same time.
What is the invisible hand?
The measure of how unevenly income is distributed among a population.
What is income inequality?