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25 Cards in this Set
- Front
- Back
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PROFIT |
The reward for taking risk in carrying out business activity |
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PRIVATE SECTOR |
Business activity which is owned, financed and organized by private individuals |
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THIRD SECTOR |
Business activity owned, financed and organized by private individuals but with the primary aim of providing needs and not making profit |
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PUBLIC SECTOR |
Business activity owned, financed and organized by the state on behalf of the population as a whole |
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COMMUNIST ECONOMIES |
Systems where resource inputs are largely owned by the state and exchange and trade is based on social, political and economic motives which may be primarily based on a belied of greater equality |
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CAPITALIST ECONOMIES |
Systems where resource inputs are largely owned by private individuals and where the motive for exchange takes place primarily for profit |
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ECONOMICS |
The study of how society makes decisions in managing scarce resources |
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SCARCITY |
The limited nature of society's resources in relation to wants and needs |
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MIXED ECONOMIES |
Economic systems that include elements of both private and public ownership of resources to answer the fundamental questions |
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THE ECONOMY |
The collective interaction between individuals in the process of production and exchange in a defined area |
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OPPORTUNITY COST |
The cost expressed in terms of the benefits sacrified of the next best alternative |
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MARGINAL CHANGES |
Small incremental adjustments to a plan of action |
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UNINTENDED CONSEQUENCES |
The outcomes of decision making or policy changes which are not anticipated and are unforeseen |
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MARKET ECONOMY |
An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services |
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PROPERTY RIGHTS |
The exclusive rights of an individual, group or organization to determine how a resource is used. |
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MARKET FAILURE |
A situation in which a market left on its own fails to allocate resources efficiently |
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EXTERNALITY |
The uncompensated impact of one person's actions on the well-being of a bystander or third party. |
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MARKET POWER |
The ability of a single economic agent (or small group of agents) to have a substantial influence on market prices. |
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ECONOMIC GROWTH |
The increase in the amount of goods and services in an economy over a period of time |
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GROSS DOMESTIC PRODUCT (GDP) PER HEAD |
The market value of all final goods and services produced within a country in a given period of time divided by the population of a country to give a per capita figure. |
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STANDARD OF LIVING |
A measure of welfare based on the amount of goods and services a person's income can buy |
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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 |
A curve that shows the short run trade off between inflation and unemployment |
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BUSINESS CYCLE |
Fluctutuations in economic activity such as employment and production |
