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Economics 6 wks. Review

Terms in this set (18)

Economics is a ___________________________, that is why it is taught by teachers and professors who have majored in social studies or economics.
social science
The ___________ were the first to study the concept of economics.
Greeks
_______________ restricts our options which forces us to choose.
Scarity
The _____________________________ utilizes the property of individuals and firms to a make a profit.
market system
_______ is a broad measurement of a nations overall economic activity
GDP
________ measures the overall production of an economy's citizens.
GNP
_________________________ arises when a person is in between jobs.
Unemployment
____________________ is the rate at which the prices of goods and services rise.
Inflation
There are ____ main types of inflation.
2
__________________________________ represents the benefits an individual, investor, or business misses out on when choosing one.
Opportunity Costs
________________________________ is an economic term that refers to the economy's ability to produce goods and services at a lower cost than those of trade partners.
Comparative Advantage
Consumer surplus is the difference between the _______________ price a consumer will pay and the actual price they pay.
maximum
___________________________ are goods offered for sale in stores, in shops, or on the internet.
Private Goods
List the things government does in a market system:
make economic laws, provide goods and services, what would be under produced and modifies the distribution income
True
Unlike the private sector, government does not have the "Invisble Hand" to help automatically direct resources to their best use.
True
Price elasticity if demand measures the the responsiveness of consumers to price change
_____________________________ is unique because a decrease or an increase in price will leave revenue unchanged.
Unit Elasticity
____________________ helps us to understand how people deal with risk and uncertainty.
Prospect Theory
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