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Terms
What's the system?
Questions you should be able to answer
More Terms
100

the loss of potential gain from other alternatives when one alternative is chosen.

Opportunity Cost

100

  •  political system in which government owns all resources and means of production and makes all economic decisions

Communism 

100

What are the three economic questions?

What to produce?

How to produce it? 

 who to produce it for?

100

-higher standard of living

Economic Growth

200

the study of choices and how people, businesses, and governments use limited resources

Economics

200

  • An Economic system that relies on habit,  or ritual to decide the three economic questions.

Traditional Economys

200

What are some disadvantages of a planned/command economy?

  • Lack of Efficiency -no incentive to work hard

  • Limited Freedom -discourages competition 

  • Lack of Growth -no innovation no growth

  • Goal of Economic Equity -human intuition prohibits equity

200

  • the government’s right to take private property for public use (Amendment 5 without just compensation)

 eminent domain

300

the additional expense or profit incurred by producing one more unit of a good or service.

Marginal cost/benifit

300

market-based economics in which government is involved to some extent

Mixed Economy 

300

What are the advantages of a free-market economy?

  • Promotes Efficiency -produce what consumers want

  • Freedom -work where you want, produce what you want, consume what you want

  • Growth innovations

  • Consumer Sovereignty - having the power to decide

300

-the basic facilities that are necessary for a society to function and grow

Infrastructure

400

Name all 4 factors of production with examples

Land

Labor

Capital

Entrepreneurship

400

  • Government owns all factors of production

Command/Centrally planned economy 

400

What is Economic Freedom?

ability of individuals to make their own choices about producing, trading, and consuming goods and services, free from undue government interference, relying on personal choice, voluntary exchange, and secure property rights

400

  • Economic side effect of a good or a service that generates benefits or costs to someone other than the person deciding how much to produce or consume-

    • generates benefits to many people

Positive Externality 

500


the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.


Human Capital

500

An economic system in which decisions on the three key economic questions are based on voluntary exchange in markets

Free Market Economy

500

Why do markets exist?

Markets exist to provide a space for people to trade/ buy and sell goods

500

  • Economic side effect of a good or a service that generates benefits or costs to someone other than the person deciding how much to produce or consume

  • Generates unintended costs

Negative externalities