Econ Vocab Flashcards
Win
Command Economy
An economic system in which the government controls a country’s economy
Economics
The study of scarcity and choice
Economic System
The methods societies use to produce and distribute resources
Entrepreneur
A person who starts up and takes on the risk of a business
Factors of Production
Land, labor, and capital; the three groups of resources that are used to make all goods and services
Free Market Economy
An economic capital in which resources are primary owned and controlled by the private sector
Human Resources
People who work to produce goods and services
Marginal Benefit
The additional benefit associated with an action
Marginal Cost
The cost added by producing one additional unit of a product or service
Inputs
The specific economic resources used in producing foods and services
Invisible Hand
Phrase coined bu Adam Smith to refer to self-regulating nature of a free marketplace
Mixed Economy
Market-based economic system with limited government involvement
Natural Resources
Raw materials form nature that are used to produce goods
Needs
Basic requirements for human survival
Negative Incentive
A penalty that dicourages a behavior
