Money
This system of money in common use within a country, acting as a medium of exchange for goods and services
What is currency?
In this economic system, the government makes most major decisions about what will be produced, how it will be produced, and who receives it.
What is a command economy?
This economist argued that self-interest, competition, prices, and profits can help coordinate an economy without a central planner.
Who is Adam Smith?
Limited resources combined with unlimited wants create this basic economic problem.
What is scarcity?
Focusing productive efforts on a limited number of activities is called this.
What is specialization?
Gold, Silver, Salt, and Cattle are examples of which type of money?
What is Commodity Money?
In this economic system, buyers and sellers make most economic decisions, private property is protected, and competition helps determine what gets produced.
What is a market economy/capitalism?
This economist focused on the conflict between workers and owners and argued that capitalism tends to concentrate economic power.
Who is Karl Marx?
Everything you give up when you make a choice is called this.
What is a trade-off?
This decision-making tool compares the additional benefits of an action with its additional costs.
What is cost-benefit analysis?
Which type of money is the US dollar?
What is Fiat?
The United States has private businesses and markets, but the government also taxes, regulates businesses, provides public services, and influences the economy. This makes the United States this type of economy.
What is a mixed economy?
A business owner wants profit but must satisfy customers to earn it. Smith used this idea to explain this concept.
What is the invisible hand?
The next best alternative you give up when making a choice is called this.
What is opportunity cost?
A worker completes additional training and becomes more skilled and productive. The knowledge and skills they gained are an example of this.
What is human capital?
This type of money has value because it is backed by a physical commodity.
What is Representative money?
Country A's government owns factories, determines production targets, sets many prices and wages, and decides how goods will be distributed. Name the economic system and identify who answers the three basic economic questions.
What is a command economy, where government planners answer what to produce, how to produce, and for whom to produce?
This thinker viewed profit as an incentive and private property as an important part of the economy.
Who is Adam Smith?
A restaurant raises wages from $12 to $16 an hour and suddenly gets more job applicants. The higher wage is this.
What is an incentive?
Workers become faster at one task through repetition, allowing more goods to be produced with the same resources. This is a benefit of this concept.
What is specialization?
If inflation rises rapidly, which function of money is weakened the most?
What is Store of Value?
Two countries both have private businesses. Country A has lower taxes, fewer trade barriers, and less government intervention than Country B. Without either country becoming communist, Country A would be located here relative to Country B on your economic spectrum.
What is farther toward the free-market/right side of the spectrum?
This thinker believed productive property should eventually be collectively owned rather than privately owned.
Who is Karl Marx?
You can work Saturday for $100 or go to a concert. You choose the concert. Assuming working was your next-best choice, this is your opportunity cost.
What is the $100 you could have earned?
Economists simplify reality using assumptions and relationships to explain or predict economic behavior. These simplified representations are called this.
What are economic models?