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12 Cards in this Set
- Front
- Back
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Scarcity |
the limited nature of society's resources |
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Economics |
the study if how society manages its scarce resources |
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Efficiency |
the property of society getting the most it can from its scarce resources |
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Equity |
the property of distributing economic prosperity fairly among the members of society |
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Opportunity Cost |
the best alternative that must be given up to obtain some item |
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Marginal Change |
a small incremental adjustment to a plan of action |
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Market Economy |
an economy that allocates resources through the decentralised decisions of many firms and households as they interact in markets for goods and services. |
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Invisible hand |
the idea that buyers and sellers freely interacting in a market economy will create an outcome that allocates goods and services to those people who value them most highly and makes the best use of our scarce resources. |
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Productivity |
the quantity of goods and services produced from each hour of a worker's time. |
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Inflation |
an increase in the overall level of prices in the economy. |
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Phillips Curve |
the short term trade off between inflation and unemployment. |
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Circular-flow Diagram |
a visual model of the economy that shows how dollars flow through markets among households and firms. |
