Chapter 1 Vocab
Economics Systems
Chapter 2 and 3 Vocab
Supply and Demand
Market Structures
100
the physical objects that someone produces
What is a good
100
an economic system that relies on habit, custom, or ritual to decide the three key economic questions
What is traditional economy
100
the amount of money a business receives in excess of its expenses
What is a profit
100
the desire to own something and the ability to pay for it
What is demand
100
a market structure in which a large number of firms all produce the same product and no single seller controls supply or prices
What is perfect competition
200
a situation in which consumers want more of a good or service than producers are willing to make available at a particular price
What is a shortage
200
an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets
What is free market economy
200
a political system in which the government owns and controls all resources and means of production and makes all economic decisions
What is communism
200
a good that consumers demand more of when their income increase
What is normal good
200
A product that is considered the same no matter who produces or sells it.
What is commodity
300
the resources that are used to make goods and services
What is factors of production
300
an economic system in which the government makes all decisions on the three key economic questions
What is centrally planned economy
300
the principle that people may decide what agreements they want to enter into
What is free contract
300
the amount of goods available
What is supply
300
the division of consumers into groups based on how much they will pay for a good
What is price discrimination
400
the most desirable alternative given up as the result of a decision
What is opportunity cost
400
a market-based economic system in which the government is involved to some extent
What is mixed economy
400
the total value of all final goods and services produced in a country in a given year
What is gross domestic product
400
A Latin phrase that means "all other things held constant
What is ceteris parabus
400
a market structure in which a few large firms dominate a market
What is oligopoly
500
the use of fewer resources than an economy is capable of using
What is under utilization
500
an economic system characterized by private or corporate ownership of capital goods
What is free enterprise system
500
the basic facilities that are necessary for a society to function and grow
What is infrastructure
500
the sum of fixed costs plus variable costs
What is total cost
500
a formal organization of producers that agree to coordinate prices and production
What is cartel
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