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Fundamentals Of Economics
Terms in this set (24)
What is scarcity?
Limited quantities of resources to meet unlimited wants
What are the factors of production?
Land, labor, capital, and entrepreneurs
List a variety of strategies for allocating scarce resources
market economy, command economy, mixed economy, and traditional economy!!!!!
What is opportunity cost?
The most desirable alternative given up as a result of a decision
Know production possibilities curve
watermelons and shoes and a curved line going down!!
What is marginal cost?
The cost of producing one more unit of a good
What do rational people do when the marginal benefit outweighs marginal cost and vice versa?
if benefit outweighs cost they will spend more, if cost outweighs benefit they will spend less
How do people and businesses specialize?
they produce specific products so its more efficient with the resources they have
What is voluntary exchange?
The concept that people may decide what and when they want to buy and sell
How do people benefit from voluntary exchange?
it creates competition
What is a command economic system?
Econ system in which the central gov makes all decisions on the production and consumption of goods and services
What is a market economic system
Econ system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets
What is a mixed economic system?
Econ system that combines free market with limited gov involvement
discuss the economic system in regards to private ownership, profit motive, consumer sovereignty, competition, and gov regulation
What are the three economic questions?
what goods should be produced, how to produce the goods, and who will consume the goods
How well do the economic systems answer the economic questions?
market- fairly good
mixed- the best
how do the different economies meet the social and economic goals of freedom, security, equity growth, efficiency, and stability?
what is the role of the government in a market economy?
They provide public services and create property right laws
Why does the gov provide public goods and services and distribute them?
because everyone uses them and it creates equality between the classes!!
how does the government in a market economy protect property rights and resolve market failures?
patent and licenses
examples of government regulation and deregulation and how these effect consumers and producers
public disclosure laws that warnt he public about goods
regulation can be bad if the laws increase the prices for both producers and consumers
What is productivity?
The value of the output produced
how does investment in equipment and technology lead to economic growth
its technological progress
if you have more update stuff then they can produce things more efficiently
examples of how investment in education can lead to a higher standard of living
because the people will be smarter, get better money, and get good jobs, and brain drain will occur less
THIS SET IS OFTEN IN FOLDERS WITH...
Unit 1: Fundamental Economic Concepts
Economics - Unit 1 Economics Fundamentals
Economics Vocabulary for EOCT
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