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Definition
| Not having enough resources to satisfy every need. |
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Term
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Definition
| The process of choosing which wants/needs will be satisfied. |
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Term
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Definition
| The next best alternative. The thing you give up to choose something else. |
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Definition
| The value of the next best alternative. |
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Term
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Definition
1. Define the problem
2. Identify your choices
3. Evaluate the adv. and disadv. of each choice
4. Act on your choice
5. Review your choice |
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Term
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Definition
1. What will be produced?
2. How will it be produced?
3. What wants/needs will be satisfied? |
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Term
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Definition
| A nation's plan for answering the three economic questions. |
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Term
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Definition
1.Government owns and controls resources
2. Government assigns jobs to consumers
Government producess food, vehicles, house, and products
3.Personal economic freedom is limited
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Term
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Definition
1. Individuals have more freedom
2. Consumers vote for products
3. Business chooses consumer's wants/needs
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Term
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Definition
| A combination of a command and a market economy. |
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Term
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Definition
| Increase gov't involvment. Prices are low for everyone. High taxes and employment for many. |
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Term
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Definition
1.Almost total gov't control or complete, totalitarianism
2.One political party
3.Little employment.
4.Little to no economic freedon. |
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Term
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Definition
1. Private ownership of businesses
2. Limited social services
3. Marketplace competition
4. Multiple political parties
5. Democracy |
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Term
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Definition
| Something necessary for survival |
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Term
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Definition
| Desires that can be satisfied by consuming a good or service |
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Term
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Definition
| Tangible, touchable, physical |
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Term
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Definition
| Intangible. (police, fire department) |
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Term
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Definition
| Means by which goods and services are produced (Four Factors of Production) |
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Term
| Four Factors of Production |
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Definition
1. Land - trees, fish, bark, lake
2. Labor - anyone that works in the economy
3. Capital - Machienery used in production of goods, money
4. Entrepreneurship - people willing to risk time and money to run a business. Competition! |
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Term
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Definition
| the struggle between customers or companies |
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Term
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Definition
| money earned from conducting business after all costs and expenses have been paid |
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Term
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Definition
| amount of goods producers are willing to make and sell |
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Term
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Definition
| customer willingness and ability to buy products |
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Term
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Definition
| point intersects in chart. Amount of money supply is equal to the demand |
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Term
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Definition
| supply exceeds demand {sale} |
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Term
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Definition
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Term
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Definition
| movement of economy from one condition to the other and back again |
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Term
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Definition
1. Prosperity - GDP is high, shortage of jobs
2. Recession - economy begins to slow (8-10yrs). 2 quarters of economic downturn.
3. Depression - deeper recession
4. Recovery - economic improvement |
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Term
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Definition
an increase in the general level of prices. (most harmful on elderly/fixed incomes)
60's - 1-3%
70's-80's - 10-12%
90's-present - 2-4%
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Term
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Definition
decrease in the general level of prices
'29-'33 - prices declined 25% |
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Term
| CPI (Comsumer Price Index) |
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Definition
| A number that compares one year with some earlier base year |
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Term
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Definition
the price of the use of another's money
rates lower = savings and investments
rates higher = borrowing money |
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Term
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Definition
| the higher the price, the lower the quantity demanded |
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Term
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Definition
| the higher the price, the higher the quantity supplied |
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