Types of Economies
Individuals own all resources
What is Free Market Economy
Where the supply and demand meet
What is the Equilibrium
Stock holders own business, run by a board of directors
What is a Corporation
a tax on imports
What is a Tariff
The cost of borrowing money
What is Interest
Government owns all factors of production
What is a Command Economy
As prices increase producers are willing to make more
What is the Law of Supply
One producer, allows for higher prices
What is a Monopoly
Ban on trade
What is an Embargo
Most valuable thing you give up when you make a decision
What is opportunity cost
Government is hands off the economy
What is Laissez Faire
Unlimited wants and needs but limited resources
What is scarcity
Companies that make complimentary products join together
EX: Ford and Goodyear
What is a vertical merger
Sending jobs overseas
What is Outsourcing
Putting something away for a future gain
What is an Investment
The father of socialism and communism
Who is Karl Marx
How quickly people want an item when prices change
What is the Elasticity of Demand
Few producers that make a product
What is a Oligopoly
Ensuring the success and expansion of domestic industry
What is Protectionism
Protects bank deposits up to $250,000
What is the FDIC
Adam Smiths idea that consumers and producers control prices
What is the Indivisible Hand
Government intervenes to set the maximum rate you can be charged
What is Price Ceiling
Breaks up or prevents monopolies
What are Anti-Trust Laws
Country can produce more with less opportunity cost
What is comparative advantage
Shows how fiscally responsible you are
What is a Credit Score