Economic Efficiency, Specialization & Comparative Advantage
This concept, introduced by Adam Smith, suggests that individuals seeking their own gain can benefit society as a whole.
What is the invisible hand?
A market structure characterized by a large number of firms, identical products, and easy entry and exit.
What is perfect competition?
The total number of workers available and willing to work in a particular job or industry.
What is the supply of labor?
This field of study examines how psychological factors influence economic decision-making.
What is behavioral economics?
Statements that express value judgments about economic fairness or what the economy should be like.
What is normative economics?
A maximum price set by the government below the equilibrium price, causing a shortage.
What is a price ceiling?
A market structure with many firms selling differentiated products and relatively easy entry and exit.
What is monopolistic competition?
The total number of job openings for workers in a particular job or industry.
What is the demand for labor?
These often irrational factors, such as fear and overconfidence, can significantly affect economic choices.
What are emotions and biases?
This type of economic analysis focuses on facts and cause-and-effect relationships.
What is positive economics?
When a country or individual focuses on producing a narrow range of goods or services to gain greater efficiency and productivity.
What is specialization?
A market structure dominated by a few large firms, often resulting in collusion and market control.
What is an oligopoly?
Organizations that represent workers in negotiations with employers over wages, benefits, and working conditions.
What are unions?
A formal, written communication typically used to provide information or a record of events.
What is a report?
A limit on the quantity of a good that can be imported into a country.
What is a quota?
The ability of a country to produce a good at a lower opportunity cost than another country.
What is comparative advantage?
A market structure where a single firm controls the entire market supply of a product with no close substitutes.
What is a monopoly?
The unemployment rate that reflects the number of people unemployed due to the time it takes to find a new job.
What is frictional unemployment?
This online platform allows businesses to create visual advertisements and interact with a large audience.
What is social media?
Goods and services sold to other countries are called this.
What are exports?
A minimum price set by the government above the equilibrium price, leading to a surplus.
What is a price floor?
The difference in wages between individuals due to factors like gender, race, or education.
What is a wage gap?
This type of unemployment occurs when workers' skills do not match the jobs available.
What is structural unemployment?
The use of this visual tool can help businesses explain complex products or services through images or diagrams.
What is an infographic?
Goods and services purchased from other countries are known as this.
What are imports?