This plays a major role in the economy. Demands goods and services that are produced and they supply the resources used to produce goods and services.
What is households?
100
The value of the best alternative passed up for the chosen item or activity.
What is opportunity cost?
100
An economic system that mixes central planning with competitive markets.
What is a mixed economy?
100
An economic unit formed by a profit-seeking entrepreneur who combines resources to produce goods and services and accepts the risk of profit and loss.
What is a firm
100
These are goods that once produced, is available for all to consume, but the producer cannot easily exclude nonpayers
What are public goods
200
They demand the resources that households supply and then use these resources to supply the goods and services that households demand.
What is firms or government?
200
A cost you have already incurred and cannot recover, regardless of what you do now.
What is a sunk cost?
200
Describes the U.S. economic system. Where markets play a relatively large role.
What is a market economy?
200
These attempt to promote competition and reduce anticompetitive behavior. They also prohibit efforts to create a monopoly in a market in which competition is desirable.
What are antitrust laws
200
By-products of production or consumption that impose costs on third parties, neither buyers nor sellers.
What are negative externalities
300
The means by which buyers and sellers carry out exchange.
What are markets?
300
The set of mechanisms and institutions that resolves the what, how, and for whom questions for an economy.
What is an economic system?
300
An economic system in the process of shifting from central planning to competitive markets.
What is a transitional economy?
300
Uses taxing and public spending to influence national economic variables such as how much is produced, how many people have jobs, and how fast the economy grows.
What is fiscal policy
300
By-products of consumption or production that benefit third parties, neither buyers nor sellers.
What are positive externalities
400
Shows interactions in the market. The flow of resources, products, income, and revenue by economic decision makers.
What is a circular- flow model?
400
An economic system with no government involvement so that private firms account for all production.
What is a pure market economy?
400
An economic system shaped largely by custom or religion.
What is a traditional economy?
400
This tries to supply the appropriate amount of money to help stabilize the business cycle and promote healthy economic growth.
What is monetary policy
400
This has programs that are designed to help make up for the lost income of people who worked but are now retired, temporarily unemployed, or unable to work because of disability or work related injury.
What is social insurance
500
Goods and services are bought in sold in this market type.
What is a product market.
500
Producing the maximum possible output for available resources.
What is efficiency?
500
These goods have two features:
1. the amount consumed by one person is unavailable for others
2. nonpayers can easily be excluded
What are private goods
500
The ________________ of households in the middle income when incomes are ranked from lowest to highest.