Economic Principles
This condition exists because there are not enough resources to produce everyone's wants.
What is Scarcity?
This factor of production involves the human effort used to create goods and services.
What is Labor?
This law states that as price rises, quantity demanded falls, and as price falls, quantity demanded rises.
What is the Law of Demand?
This economic system, also known as capitalism or free enterprise, is based on supply and demand.
What is Market Economy?
Karl Marx, Fidel Castro, Joseph Stalin, and Vladimir Lenin are associated with this ideology.
What is Communism?
When making a choice, you should evaluate the full set of these two things associated with that choice.
What are Costs and Benefits?
Money is NOT considered part of this factor of production.
What is Capital?
This occurs when the amount that producers want to sell is less than the amount that consumers want to buy.
What is a Shortage?
In command economies, these people decide what goods will be produced and at what price they'll be sold.
Who is the Government?
In socialism, high taxes are focused on these types of services or programs.
What are social services and welfare state?
The study of individual decisions and their implications for specific markets.
What is Microeconomics?
The value of this factor of production varies by industry.
What is Land?
According to the law of supply, as price falls, quantity supplied does this.
What is Decrease?
Too much government involvement in mixed economies can lead to inefficiency, corruption, or this financial problem.
What is Heavy Debt?
This system features unequal redistribution of wealth to reinforce a rigid class structure and nationalistic religion.
What is Fascism?
These are factors that influence a person's behavior.
What are incentives
This factor of production drives innovation and fuels economic growth.
What is Entrepreneurship?
When the supply curve shifts to the left, this happens to supply.
What is it Decreases
This major weakness prevents traditional economies from adapting to climate change or outside competition.
What is lack of innovation and economic growth?
This philosophy believes the free market will determine prices and competition will drive improvements.
What is Capitalism?
This is the next best alternative that you give up when you make a choice.
What is Opportunity Cost?
When factors of production are missing or inefficient, this happens to costs and output.
What is costs increase or output reduces?
This is the price at which quantity demanded equals quantity supplied.
What is Equilibrium Price
This economic system can mobilize quickly but often ignores individual needs.
What is Command Economy?
Both socialism and fascism allow individuals to own property and small businesses, but the state owns these types of services.
What are essential services?