Shortage and Scarcity
Incentives
Resources are Scarce
Markets
Governments
100
Study of how society manages scarce resources
What is economics?
100
Something that induces a person to act
What is incentive?
100
Examples are land, labor, and capital
What are resources?
100
A group of buyers and sellers for a particular product
What is a market?
100
When the market doesn't allocate resources efficiently
What is market failure?
200
The limited nature of societies resources
What is scarcity?
200
Cost incurred that can't be recovered
What is sunk cost?
200
Getting the most from your resources
What is efficiency?
200
A central planning body that determines what to produce and how to produce it and how to allocate resources
What is a command economy?
200
When the production/consumption of a good or service affects bystanders
What are externalities?
300
Mismatch between unlimited wants and limited resources
What is scarcity?
300
Incremental adjustments to existing plans
What is marginal change?
300
Uniformly distributing prosperity
What is equality?
300
The allocation of resources through decentralized decisions made by households and firms as they interact in markets
What is a market economy?
300
Examples are defense, roads, and parks
What are public goods?
400
When quantity supplied is less than quantity demanded
What is shortage?
400
The amount of something you give up to obtain one more unit of something
What is marginal cost?
400
What benefits you must give up in order to obtain something
What is opportunity cost?
400
The signal sent by price increases and decreases that guide a market economy (according to Adam Smith)
What is the invisible hand?
400
When a single buyer or seller has substantial influence on market prices
What is market power?
500
Items used to produce goods and services
What are resources?
500
The amount of satisfaction you gain from having one more unit of something
What is marginal benefit?
500
Something that can be consumed by many people at one time with non-rival consumption
What is a public good?
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