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20 Cards in this Set
- Front
- Back
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Shortage
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A Situation in where a good is unavaliable (excess demand) temporarily our of stock
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Law of Increasing Costs
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as we shift factors of porduction from making one good service to another, the costof producing the second item increases.
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Guns vs. Butter
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a phrase that refers to the trade-offs that nations face when chosing whether to produce more or less military or consumer goods
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Production Possibilities Frontier
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the line on a production possibilities graph that shows the maximum possible output for a specific economy
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Scarcity
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something that always exist
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Decision made at the margin
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making a decision ahead
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Human Capital
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the knowledge and skills a worker gained through education and expierance
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Physical Capital
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human made objects to create other goods and services
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Entrepreneur
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someone who creates new goods & services by combining land, labor, and capital
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What can a decision-making grid do?
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it helps determine whether we are willing to accept opportuity cost.
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Thinking at the margin
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thinking ahead & which would benefit better
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shortage
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when producers cannot/ will not offer goods at current prices
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specialization
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the limited number of activites for a certain individual
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Adam Smith
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the one who believed goverment shouldnt intervene with business
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what is the function or an economic system?
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the function of an economic system is to produce goods & services
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what are the advantages of a free market?
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they are based economy on individualism trade
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Vladimir Lenin
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is a revolutionist from Russia that brought in communication
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Traditional Economy
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based on ritual, custom morals on products
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Market
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a free market based economy is in charge of making the choices
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Centrally Planned Economy
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is where goverment interveneance is made and they control everything
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