Economics Flashcards
(26 cards)
A true free market system would also be known as
capitalism
Resources like food and shelter which it is easy to assign a dollar value are
tangible resources
Resources like aesthetic value to which it is more difficult to assign a dollar value are
intangible resources
The point in a economic system where supply and demand are equal is called
market equilibrium
where there is more supply than there is demand, a _______ occurs.
surplus
When there is more demand then there is supply, a ________ occurs.
shortage
The amount of a product that is desired in an economy is
demand
Estimates and totals of the monetary value of the strengths and weaknesses of a particular project are done in a
cost benefit analysis
The annual economic value of all goods and services produced in a country in a given year is
Gross Domestic Product
A tax on pollution or resource use is called
green tax
An estimate resources future value compared to current value is
discount rate
In a sustainable economy, ______ concerns are used to determine which projects are optimal
Social, Economic, Enviornmental
The annual economic value of all goods and services produced in a country in a given year minus the costs that lead to a lower quality of life or deplete/ degrade natural resources is
Genuine Progress Indicator
The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area is
standard of living
The World Bank is
a United Nations international financial institution that provides loans to developing countries for capital programs
cost of producing one more unit of a good which helps to explain the idea of economies of scale or the idea that production costs per unit decrease as the number of units that are produced
marginal cost
the selling price that is determined by adding overheads profit margin resource cost environmental cost and the cost to human health is
full cost
how much it takes to offset any environmental damage of a project is
mitigation cost
a form of financial or in kind support extended to an economic sector generally with the aim of promoting economic and social policy is
government subsidy
changing financial support from environmentally harmful sectors to more environmentally friendly sectors is
subsidy shifting
also known as a flat tax in which one tax rate is applied to each unit of resource used or each dollar earned is
straight tax
a system in which there is a set limit on emissions, which is lowered over time to reduce the amount of pollutants released into the atmosphere combined with the ability of companies to exchange pollution credits with one another is a
cap and trade system
the market price that is paid in the US for electricity and gasoline is generally
underpriced based on the true full cost of the item
the market price that is paid in the US for food is generally
underpriced
