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37 Cards in this Set
- Front
- Back
Things we would like to have such as entertainment and vacations |
Wants |
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Things that are required for survival such as food, clothing and shelter |
Needs |
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Economic motivator such as Lower interest rates, products on sale, buy one get one free, and a raise in salary |
Incentives |
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Simplified representations of the real world |
Models |
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The study of how we make decisions in a world where resources are limited |
Economics |
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Question on whether to improve roads or build schools |
WHAT to produce |
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The Question of How much pollution we should allow factories that manufacture products to generate |
HOW to produce |
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The idea that consumers with a high enough income can borrow money from a bank to take out a mortgage on a house |
FOR WHOM to produce |
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In most command economies, the government often specializes in military goods rather than meeting the needs of the people through consumer goods |
WHAT to produce |
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Scarcity of resources in many traditional economies prevent the development of technology, so activities such as farming are passed down from generation to generation |
HOW to produce |
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The extra cost of producing one additional unit of output |
Marginal cost |
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The number of units sold multiplied by the average price per unit |
Total revenue |
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Expenses that are the same no matter how many units of a good are produced |
Fixed costs |
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Expenses that change with the number of products produced |
Variable costs |
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The change in total revenue that results from selling one more unit of output |
Marginal revenue |
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The consequence that happens when we choose to have more pollution-free air by driving less |
Trade-off |
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The main determining factor of how an economic system is developed |
The amount of government control |
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In which type of economic system do private citizens own most, if not all, of the means of production |
Capitalist |
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The term that refers to what you cannot buy or do when choosing to do one thing over another thing |
Opportunity cost |
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The term that refers to what you cannot buy or do when choosing to do one thing over another thing |
Opportunity cost |
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Because reasonable economic decision making tells us to choose an action when the benefits are greater than the costs |
Cost-benefit analysis |
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People's thoughts about the future products that enhance each other and are used together |
Expectations |
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Extra benefits gained from purchasing a good or service |
Marginal benefit |
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Willingness and ability to purchase a product or service |
Demand |
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Total demand for a product or service by all consumers |
Market demand |
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Graph listing products being purchased with all prices on the vertical axis and quantities on the horizontal axis |
Demand curve |
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Products that enhance each other and are used together |
Complements |
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Each change in price causes a relatively larger change in quantity demanded |
Elastic demand |
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Works together with demand to set prices |
Supply |
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A knowledge of demand is important for this type of economic system to work |
Market economy |
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The number of ________ will have an impact on demand, causing it to increase or decrease |
Consumers |
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No country in the world relies exclusively on markets to deal with the economic problem of scarcity, which means that ____ will always play a role on each economic system |
Government involvement |
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Private ownership of property and resources; Competition is prevalent resulting in many market choices |
Free Market Economy |
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Private ownership of property and resources; Competition is prevalent resulting in many market choices |
Free Market Economy |
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The government makes decisions in the public sector and individuals make decision in the private sector; most common economic system used by countries around the world |
Mixed Economy |
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Central government ownership of property and resources |
Command Economy |
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People have the same type of work as their parents and grandparents |
Traditional |