econ

Question 1

scarcity

Answer 1

when unlimited wants exceed limited productive resources ( You want more than you have the supplies to make)

Question 2

Goods

Answer 2

Physicals Objects
a product that is useful, relatively scarce (limited), and “sellable”
Used to satisfy needs and wants

Question 3

Services

Answer 3

work or service performed for another person
ex: haircut

Question 4

Factors of Production

Answer 4

The 4 categories that make up the productive resources ( Land, Labor, Capital, Entrepreneurship

Question 5

Allocate

Answer 5

to distribute resources for a particular purpose

Question 6

Trade-Offs

Answer 6

all the possible opportunities in a situation

Question 7

Opportunity costs

Answer 7

the value of the next best thing given up when someone is forced to make a choice due to scarcity
Ex: you can have McDonalds or Burger King for dinner

Question 8

Cost-Benefit Analysis

Answer 8

way of thinking that compares the cost of an action to its benefit

Question 9

Marginal cost

Answer 9

extra cost of producing one additional unit of production

Question 10

Marginal Benefit

Answer 10

the benefit you get from consuming an additional unit and the amount of money a consumer is willing to pay for an additional unit

Question 11

Rational Decision Making

Answer 11

a process for making decisions between trade-offs or alternative choices

Question 12

Specialization

Answer 12

also known ad Divison of Labor
person is assigned a specific task to perform less function more frequently

Question 13

Division of Labor

Answer 13

Separation of work into multiple tasks to be performed by different workers
Also known as specialization

Question 14

Voluntary Exchange

Answer 14

the act of buyers and sellers freely and willingly engaging in market transactions

Question 15

Efficiency

Answer 15

doing a job the most effectively with as little time and resources/cost as possible

Question 16

3 Economic Questions

Answer 16

What to produce?
How to produce?
For whom to produce?

Question 17

Traditional Economy

Answer 17

economic system where the allocation of scarce resources and other economic activity is the results of ritual, habit, or custom

Question 18

Command Economy

Answer 18

economic system where the central authority (gov’t) make most of the major economic decisions

Question 19

Market Economy

Answer 19

Economic system where supply, demand, and the price system help people make decisions and allocate resources
*Also known as Free Enterprise

Question 20

Capitalism

Answer 20

An economic system where private citizens own and use factors of production to make profit

Question 21

Mixed Economy

Answer 21

Also known as Modified Private/Free Enterprise Economy
People control economic affairs freely, but are subject to

Question 22

Private Ownership

Answer 22

when things are owned by individuals, groups, or businesses

Question 23

consumer sovereignty

Answer 23

the role of the consumer to rule the market when determining the types of goods and services to produce

Question 24

competition

Answer 24

the struggle between sellers to attract consumer while lowering costs

Question 25

regulation

Answer 25

a rule or directive given by a person in authority, typically the gov’t

Question 26

Deregulation

Answer 26

the government removes or relaxes some of its regulations (rules) on business activites

Question 27

redistribution of wealth

Answer 27

the government taking resources from those who have more and giving them to those who have less

Question 28

standard of living

Answer 28

quality of life based on the ownership of necessities that make life easier
*housing, healthcare, education