Foundations of Econ
This is how people use limited resources to meet needs and wants.
What is an Economy?
Money acts as this when it is used to buy and sell.
What is a Medium of Exchange?
This system is mostly “hands off” by the government.
What is a Market Economy?
This measures the total value of goods and services produced in one year.
What is GDP?
These are the four resources needed to create goods and services.
What are the Factors of Production?
These are physical items you can touch and buy.
What are Goods?
Money acts as this when it can be saved and used later.
What is a Store of Value?
This system is mostly “hands on” and controlled by the government.
What is a Command Economy?
This divides GDP by population to show average wealth per person.
What is GDP per capita?
This person starts a business, takes risks, and tries to earn profit.
What is an Entrepreneur?
These are actions people perform for others, like teaching or repairing.
What are Services?
Money acts as this when it helps people compare prices.
What is a Unit of Account?
This system combines elements of both market and command.
What is a Mixed Economy?
This index measures wealth using social and health factors instead of only money.
What is the Social Progress Index (SPI)?
This type of economy depends heavily on one natural resource export.
What is a Resource-Based Economy?
This includes tools, machines, buildings, and money used to produce goods.
What is Capital?
This makes modern money valuable, even though paper has little real value.
What is Trust?
This type of economy is based on subsistence and little use of money.
What is a Traditional Economy?
This is the process of the world’s economies becoming more connected.
What is Globalization?
This happens when resource-rich countries struggle with corruption or instability.
What is the Resource Curse?
This system required both people to want what the other had at the same time.
What is Barter?
This is a digital currency that is decentralized and exists on computer networks.
What is Cryptocurrency?
This economic system encourages competition and innovation.
What is a Market Economy?
This term describes how countries depend on one another for goods and services.
What is Interdependence?
This is when a problem in one country’s production affects others around the world.
What is a Supply Chain Disruption?