The cost of not selecting the next best alternative
What is Opportunity Cost?
100
The study of human efforts to satisfy what appear to be unlimited and competing wants through the use of scarce resources
What is Economics?
100
Economic concept that states that nothing is truly without a cost.
What is TINSTAAFL or There Is No Such Thing As A Free Lunch?
100
The condition that arises because society does not have enough resources to produce all of the things people would like to have; the fundamental economic problem.
What is Scarcity?
200
People have the right and privilege to control their possessions as they wish, includes tangible products (cars and houses) as well as intangible products (talents and skills).
What is Private Property?
200
A system in which the government controls the factors of production and makes all decisions about their use.
What is a Command Economy?
200
Some things are needed but are cheap, others are not needed but they are costly.
What is the Paradox of Value?
200
Alternative choices, things you could have chosen to buy instead of what you did.
What are Trade offs?
200
A good that lasts 3 years or more when used on regular basis.
What is a Durable Good?
300
A system in which individuals own the factors of production and freely make decisions about what to produce and what to consume.
What is a Market Economy or Capitalism?
300
People who use goods and services to satisfy wants and needs.
Who are Consumers?
300
Goods intended for use by individuals.
What are Consumer Goods?
300
A system in which economic decisions are based on customs and beliefs that have been handed down from generation to generation.
What is a Traditional Economy?
300
Something that has a worth in dollars & cents.
What is Value?
400
Rivalry among producers or sellers of similar goods and services to win more business.
What is Competition?
400
An economic system that combines the characteristics of more than one type of economy.
What is a Mixed Economy?
400
A good used to produce other goods.
What is a Capital Good?
400
This is the other side of freedom of enterprise, it means that buyers, not sellers, make the decisions about what should be produced.
What is Freedom of Choice?
400
Desire to make money that motivates people to produce and sell goods and services.
What is Profit Incentive?
500
The capacity to be useful to someone.
What is Utility?
500
The power of the consumer in the market (buy what they want).
What is Customer Sovereignty?
500
These are the three basic questions every society must answer with regard to economics.
What to produce? How to produce? For whom to produce?
500
Money left after all the costs of production- wages, rents, interest, and taxes- have been paid.
What is Profit?
500
When people freely and willingly engage in market transactions; everyone wins.