Quiz #1 Vocab Flashcards Preview

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Flashcards in Quiz #1 Vocab Deck (15):
0

Not enough resources to meet all individual needs and wants

Scarcity

1

Value of the choice you have up when you made a decision

Opportunity cost

2

Allocation of resources
(The three economic questions)

What do we produce?
How do we produce it?
For whom do we produce?

3

_________ economy

Private property rights
Voluntary exchange
Households and firms make economic descisions

Market economy

4

___________ economy

Government controls resources and makes economic descisions

Command economy

5

Characteristics of ____________
Mixed economy
Market system with some government involvement

Capitalism

6

Spending on final goods and services for personal use

Consumption

7

Use of money to acquire capital goods and grow the size of firms

Investment

8

Characteristics of _________
Divide one large job into smaller parts
Improves efficiently
Example: assembly line

Specialization

9

Four factors of production

Land
Labor
Capital
Entrepreneurs

10

Earns interest only on original principal
Ex: treasury/corporate bonds

Simple interest

11

Earns interest only on original principal plus interest already earned
Ex: savings account

Compound interest

12

Quantity demanded>quantity supplied: price will RISE

Shortage

13

Quantity supplied>quantity demanded: price will FALL

Surplus

14

Observing the effect of each incremental decision.

Marginal analysis