Concepts
S&D
Economy Types
Well Being
Policy
400
The value (worth) of the next best alternative that is given up (sacrificed) when a decision is made by a person or a company.
Opportunity cost
400
A person who purchases goods and services for personal use.
Consumer
400
This economy exists in primitive cultures where most activity is focused on providing food. People follow the methods and traditions their ancestors have always used. The largest incentive in this economy is providing for the survival needs of fellow people within the community. Competition has a very small role.
Traditional
400
The general, sustained increase in the price level of goods and services and a decline of purchasing power of a currency.
Inflation
400
The government’s use of taxation and government spending is known as
Fiscal Policy
800
When a business or nation has decided to focus its production on something that they have a comparative advantage in?
Specialization
800
Amount of something left over when requirements have been met; an excess of production or supply over demand.
Surplus
800
The government takes all of the profit. There is no profit to be made by the individual in this economy. As for the individual’s working wages, the government determines how much they get paid; it is usually very low
Command Economy
800
Which of the following is NOT included when calculating GDP?
Consumption
Government Spending
Investments
Imports only
Imports only
800
Fiscal Policy is the spending and taxing policies used by who?
President and Congress
1200
The condition that exists because there are not enough resources to provide everybody what they want or need
Scarcity
1200
What is the Equilibrium quantity?
200
1200
The consumer has many choices in this economy. In fact, the producers make their decisions primarily on the demands of the consumer. Both consumers and producers have individual freedom in their activities with no government intervention
Market Economy
1200
DAILY DOUBLE
When talking about GDP, when a business buy equipment or inventories, this is referring to
Investments
1200
To encourage Americans to buy domestic products, the government implements what on other country's goods?
Tariffs
1600
The ability to produce something at a higher quality and faster rate
Absolute Advantage
1600
$1.00
1600
The government has created antitrust laws to ensure that there are fair practices on the market, and the individuals have the ability to start their own business and sell goods that they want.
Mixed Economy
1600
The measure of the total value of all final goods and services produced in a country during a year is known as
Gross Domestic Product GDP
1600
To stimulate the economy when the GDP falls and unemployment rises the nation will introduce what kind of policy?
Expansionary fiscal policy
2000
The ability to produce something at a lower opportunity cost than a competitor.
Comparative Advantage
2000
If price is $15, quantity supplied would be
400
2000
An example of a Command Economy
Soviet Union, North Korea, China
2000
The measure of the average change in the price paid by consumers over a period of time is called the
Consumer Price Index CPI
2000
To prevent the economy from growing anymore and slow inflation a nation will introduce what kind of policies?
Contractionary fiscal policy