Types of Economies
In this type of economy, prices are controlled by supply and demand.
What is a market economy?
This market structure involves identical goods.
What is perfect/pure competition?
When this goes up, price goes down.
What is (the law of) supply?
This is what is on the X-axis (vertical) of the Business Cycle.
What is GDP?
This is the motivation in a market economy.
What is profit?
In this type of economy, central planners dictate supply and prices.
What is a command economy?
Video games consoles are an example of this type of market - there aren't many to choose from.
What is oligopoly?
When this goes up, price goes up?
What is (the law of) demand?
This is the name of the basket of goods that is used to measure inflation.
What is CPI? (Consumer Price Index)
Giving up making 30 iPads in order to make 20 more iPhones is an example of this.
What is opportunity cost?
This type of economy involves family roles and bartering instead of prices?
What is a traditional economy?
Charlotte Water controls all water in the city. This is an example of this type of market structure.
What is monopoly?
This occurs when quantity demanded & quantity supplied is exactly the same.
What is equilibrium?
This type of person has not searched for a job in the past 4 weeks and is no longer considered "unemployed."
What is a discouraged worker?
This term explains why we have to make economic choices.
What is scarcity?
Communism is an example of this type of economy.
What is a command economy?
In this market structure, goods are similar but slightly different, allowing producers to make variations to maintain a competitive edge and outsell their competitors.
What is monopolistic competition?
This occurs to demand of a good when it's substitute becomes more popular.
What is increases/shifts to the right?
This indicator shows us the percent by which the total size of the economy grew or shrank.
What is GDP?
These are individuals that take risks to start a business.
What are entrepreneurs?
A government that regulates emissions on oil producers while still allowing them to set their own prices would be in this type of economy.
What is a mixed economy?
This type of monopoly forms because the barriers to enter the market are simply too high for any other firms to join. They are not illegal, and the NFL is an example.
What is a natural monopoly?
This would occur in the market for apartments in Charlotte if the government implements a maximum rent, but many new people are moving to the city.
What is a shortage?
This indicator typically rises when GDP grows.
What is inflation?
These are the three basic economic question.
What is what to produce, how to produce it, and for whom to produce it?