LT#1-2
Basic Econ/Scarcity
Basic Econ/Scarcity
Economics is the study of...
What is People and Choices?
What are Water and Diamonds?
What are Diamonds and Water?
This group buys goods and services in the circular flow model.
What are Households?
This economic thinker advocated for capitalism in his book The Wealth of Nations.
Who is Adam Smith?
This economic goal allows money to keep it's value and prevent from inflation or deflation of money.
What is price stability?
What is economic stability?
Referred to as the Four Factors of Production, these resources are used by businesses to make goods and services.
What are Land, Labor, Capital, and Entrepreneurship?
This term is used to describe when households generate/make money.
What is income?
This group buys the factors of production in the Circular Flow Model.
What are Businesses?
This economic thinker is famous for writing the Communist Manifesto.
Who is Karl Marx?
This economic goal explains that Americans enjoy the freedom of choosing what jobs to work and what things to buy.
What is Economic Freedom?
The Economic concept that resources are limited, but our wants and needs are unlimited.
What is Scarcity?
This model is used to illustrate how Households and Businesses interact in an economy.
What is the Circular Flow Model?
This graph is illustrates all of the possible combinations of two goods or services that can be produced.
What is the production possibilities curve?
This economic system is centered on tradition, as roles are passed on from one generation to the next.
What is a traditional economy?
This economic goal explains that every person who wants a job, should have access to one.
What is full employment?
These are the three basic economic questions that all countries must answer.
What? How? For Who/Whom?
These are used by Businesses to create goods and services.
What are the Factors of Production?
OR
What are resources?
A classic Econ example of the trade-offs that countries face when choosing to produce more or less military or consumer goods.
What are guns and butter?
This economic system is controlled entirely by government officials.
What is a command economy?
This economic goal explains that the economy should be utilizing all of it's resources to produce efficiently.
What is Economic Efficiency?
This Economic saying suggests that things that appear to be free will always have a hidden cost to someone.
What is There is No Such Thing As a Free Lunch?
This term is used to describe when businesses generate and make money.
What is revenue?
The benefit you give up by choosing to do one thing instead of another.
What is opportunity cost?
This economic thinker argued that the government should help the marketplace in times of extreme need.
Who is John Maynard Keynes?
This Economic goal explains that Americans want more and better goods/services overtime.
What is Economic Growth?