Economics
Economics Definition
What is The study of how individuals, businesses, and governments make choices about allocating resources?
Opportunity Cost
What is The next best alternative given up when making a choice?
Consumer Sovereignty
What is Consumers dictate what goods and services are produced based on their preferences?
Public Goods
What are Goods that are non-excludable and non-rivalrous, meaning they are available to all and one person's use does not reduce availability to others?
Free Market Economy definition
What is An economic system where prices are determined by unrestricted competition between privately owned businesses?
Economics are important because
What is because It helps understand how societies use scarce resources to satisfy unlimited wants?
Scarcity
What is Resources are limited, which forces people to make choices?
Production Possibility Curve
What is A graph that shows the maximum feasible amounts of two goods that a business can produce?
Externalities
What are Costs or benefits that affect third parties who did not choose to incur that cost or benefit?
Capitalist Economy definition
What is An economic system based on private ownership of the means of production and their operation for profit?
The two types of economics
What are Macroeconomics and Microeconomics?
Supply and demand
What is Prices are determined by the relationship between the quantity of a good available and the desire for that good?
Specialization
What is Focusing on a specific task to improve efficiency and productivity?
Elasticity
What is A measure of how much the quantity demanded or supplied responds to changes in price?
Fiscal Policy is
What is Government policy regarding taxation and spending to influence economic conditions?
Microeconomics definition
What is Focuses on individual consumers and businesses. Examines how they make decisions and how they interact in markets?
Incentives
What are Factors that motivate individuals to act. Can be positive (rewards) or negative (penalties)?
Trade-offs
What is Balancing between two competing choices?
Global Trade
What is The exchange of goods and services between countries, which affects local and global economies?
Monetary Policy is
The process by which the central bank (like the Federal Reserve in the USA) manages the supply of money and interest rates to influence the economy?
Macroeconomics Defintion
What is Looks at the economy as a whole. Studies large-scale economic factors like inflation, unemployment, and national income?
Market Equilibrium
What is The point where supply equals demand, resulting in a stable price
Market Failures
What are Situations where the free market does not allocate resources efficiently, leading to negative outcomes?
Economic indicators
What are Statistics that provide information about the economic performance of a country?
The USA operates largely as a ______ economy
What is Capitalist Economy?