When someone is motivated to do something for a reward
What is positive incentive
100
A central authority (usually government) makes most of the WHAT, HOW, and FOR WHOM decisions
What is command
100
The top of the business cycle
• Prosperous time: high production, low unemployment, and wages increase
• Short-lived: economy will come back down soon
What is peak
100
The number of people not working
What is unemployment
100
is a regressive tax, which means the less you make the bigger percentage you pay
What is sales taxes
200
A fear of acting a certain way
What is negative incentive
200
People and firms act in their own best interests to answer the WHAT, HOW, and FOR WHOM
What is market
200
When the economy starts going down
• Fall in production, rising interest rates, and declining profits
What is contraction
200
When changes in the structure of the work place change the need for workers
What is structural unemployment
200
Everyone pays the same amount, proportional to their income
What is proportional tax
300
When a company meets full potential
What is full production
300
People can carry out many economic decisions and the government intervenes when needed
What is mixed market
300
Low point of the economy
• High unemployment, low economic production, falling stock prices
• Bottom out
What is trough
300
Workers who are in- between jobs (looking for another job)
What is frictional unemployment
300
People pay a higher portion of tax, the less money they make
What is regressive tax
400
When a company waste resource
What is under production
400
Producers decide how goods will be produced
What is market
400
Growth after a less prosperous period
• When you begin to come out of a trough
What is recovery
400
Unemployment because of the change of the seasons
What is seasonal unemployment
400
The more money you make, the more you are taxed
What is progressive tax
500
When consumers are wanting more than produced
What is shortage
500
Government decides for whom goods are produced
What is command
500
The economy is growing
• Started by something designed to stimulate the economy
Government spending, corporate tax breaks, increased investment
• Continues to expand (grow) until it reaches the peak
What is expansion
500
Unemployment directly related to swings in the business cycle
What is cyclical unemployment
500
Government uses taxes to get money for their budget