Definitions
Economics is all about this
Choices
The curve shows how much of two products you could make at different points with the same what
Resources
Economy based on habits and customs
Traditional Economy
Pro: You always know what your job is because it is the same as your family
Traditional Economy
When making a decision, the next best alternative to that decision is known as what?
Opportunity cost
Any point beyond the PPC would be considered what?
Impossible with given resources.
What type of economy is the United States?
Mixed market
Con: Wealth disparity and unfair working conditions
Free Market system
What does margin/marginal mean?
Additional
Any point on the PPC is considered...
Efficient
Who makes all the decisions in a command economy?
Government
Pro: equality for everyone
Command System
The fundamental problem of having limited resources and unlimited wants
Scarcity
What would cause a PPC to shift outward?
New technology
Who makes all the decisions in a free market system?
Producers (sellers) and consumers (buyers)
Con: Inefficiency and no change (Name both)
Traditional and Command
What is the difference between a good and a service?
A good is a tangible item that one can buy. A service is an action someone performs for you.
The concentration of the productive efforts of individuals and firms on a limited number of activities is known as what?
Specialization
Why are there no modern examples of a 100% pure market economy?
Government has no control at all, and most countries around the world, the government does control some aspects.
Pro: Profit motive, consumer sovereignty, and competition
Free Market