Basic Vocabulary
Section 2 & 3
Markets pt. 1
Markets pt. 2
Markets pt. 3!
100
Something we desire, like oxygen
What is a need?
100
You skip class to go see a movie (Frozen). It was a good movie, you are glad you went. However you missed some important info in economics. If you didnt go see the movie, you would have been at school. In this trade-off, school is this.
What is opportunity cost?
100
These markets are successful if they meet their own needs.
What is a traditional market?
100
Individual personal gain
What is self-interest?
100
In mixed economies, the circular flow model of free markets adds one more group that answers the 3 economic questions.
What is the government?
200
I only have 2 hours before school and I need to eat, shower, type a paper and study for 3 quizzes. Aaaahhhhhhhhhhhhhhhhhh
What is scarcity?
200
The reason PPFs have a curve
What is the law of increasing costs?
200
In a perfect free market, there is no government involvement. Firms & Households exchange resources, goods/services and money in a model known as this.
What is circular flow?
200
The self-regulating nature of free markets.
What is the invisible hand?
200
Selling a government business to individual investors
What is privatization?
300
Ice cream
What is a want?
300
The decision to add or subtract one unit of a resource, weighing the cost vs. benefit.
What is thinking at the margin?
300
These are necessary because we are not self-sufficient. An arrangement that allows buyers and sellers to exchange things.
What is a market?
300
In a free market, when a business rents a building from an individual (land owner), this is an example of this type of market. (The market where land, labor & capital is purchased)
What is the factor market?
300
The best example we have of a centrally planned economy in the world today.
What is North Korea?
400
A situation where consumers want more of a good or service than producers are willing to make available at a particular price
What is shortage?
400
These three changes cause a shift in the PPF.
What is change in resources, technology & trade?
400
An important aspect of free market economies. To provide the best good/service, you need to concentrate your efforts in a limited way.
What is specialization?
400
Free market economies is to inequality as Command economies is to this
What is authoritarianism?
400
Due to globalization, many countries who want greater access to the global economy need to privatize their industries. The period where economies change their economic system is known as this.
What is economic transition?
500
Combine resources to make goods & services
What is an entrepreneur?
500
Unemployment is an example of this.
What is underutilization?
500
Struggle among producers
What is competition?
500
In free markets, demand is set by consumers, goods and services produced by businesses. In centrally planned economies, the government determines what gets produced. And these, not private businesses, produce the goods & services.
What are government bureaucracies?
500
An economic system characterized by private or corporate ownership of capital goods. (The American economy is an example of this - a mixed economy but founded with free market principles)
What is a free enterprise system?
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