Economics
1
1
Scarcity
The gap between limited amount of resources and unlimited wants
Invisible Hand
Term economists use to describe the unseen forces that move the free market economy
News Article
An article written to inform readers about an event or subject.
Free Market
An economic system in which prices and wages are determined by unrestricted competition between businesses, without government regulation or fear of monopolies.
Command Economy
An economic system in which the government controls a country's economy.
Law of Demand
As price increases consumer demand decreases. As price decreases demand will increase.
Mixed Economy
A combination of Command Economy and Free Market where businesses, consumers, and the government all have a say in the economy.
Globalization
The process by which businesses or other organizations develop international influence or start operating on an international scale.
Law of Supply
As price increases so does quantity of supply. As price decreases quantity of supply also decreases.
Utility
Ability or capacity of a good or service to be useful and give satisfaction to someone.
Comparative Advantage
The ability to produce a good at a lower opportunity cost than another producer
Profit Motive
The force that encourages people and organizations to improve their material well-being.
Editorial
A piece of opinionated writing that reflects the consensus view of the publication itself.
Specialization
The process of focusing production on specific goods and/or services to maximize profits.
Opportunity Cost
The most desirable alternative given up as the result of a decision.
Demand Shift
A change in the amount buyers want to purchase at a given price.
Trade Offs
Choosing to sacrifice one thing in order to do or get more of something else. For example, saving up money and choosing between a new car or a vacation.
Op-Ed
An opinion piece in which the author is expressly trying to convince the reader of something; an abbreviation for opposite the editorial, which is where op-eds were initially placed in newspapers.
Subsidy
A government payment that supports a business or market.
Supply Shift
A change in the amount sellers supply at a given price.
Welfare State
A government that undertakes responsibility for the welfare of its citizens through programs in public health and public housing and pensions and unemployment compensation etc.
Equilibrium Quantity
The quantity supplied and the quantity demanded at the equilibrium price.
Sanction
Commercial and financial penalties applied by one or more countries against a targeted self-governing state, group, or individual
Factors of Production
Daily Double!
Land, labor, and capital; the three groups of resources that are used to make all goods and services.
Equilibrium Price
The price that balances quantity supplied and quantity demanded.