Economic Harmony

Front 1

Things we would like to have such as entertainment and vacations

Back 1

Wants

Front 2

Things that are required for survival such as food, clothing and shelter

Back 2

Needs

Front 3

Economic motivator such as Lower interest rates, products on sale, buy one get one free, and a raise in salary

Back 3

Incentives

Front 4

Simplified representations of the real world

Back 4

Models

Front 5

The study of how we make decisions in a world where resources are limited

Back 5

Economics

Front 6

Question on whether to improve roads or build schools

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WHAT to produce

Front 7

The Question of How much pollution we should allow factories that manufacture products to generate

Back 7

HOW to produce

Front 8

The idea that consumers with a high enough income can borrow money from a bank to take out a mortgage on a house

Back 8

FOR WHOM to produce

Front 9

In most command economies, the government often specializes in military goods rather than meeting the needs of the people through consumer goods

Back 9

WHAT to produce

Front 10

Scarcity of resources in many traditional economies prevent the development of technology, so activities such as farming are passed down from generation to generation

Back 10

HOW to produce

Front 11

The extra cost of producing one additional unit of output

Back 11

Marginal cost

Front 12

The number of units sold multiplied by the average price per unit

Back 12

Total revenue

Front 13

Expenses that are the same no matter how many units of a good are produced

Back 13

Fixed costs

Front 14

Expenses that change with the number of products produced

Back 14

Variable costs

Front 15

The change in total revenue that results from selling one more unit of output

Back 15

Marginal revenue

Front 16

The consequence that happens when we choose to have more pollution-free air by driving less

Back 16

Trade-off

Front 17

The main determining factor of how an economic system is developed

Back 17

The amount of government control

Front 18

In which type of economic system do private citizens own most, if not all, of the means of production

Back 18

Capitalist

Front 19

The term that refers to what you cannot buy or do when choosing to do one thing over another thing

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Opportunity cost

Front 20

The term that refers to what you cannot buy or do when choosing to do one thing over another thing

Back 20

Opportunity cost

Front 21

Because reasonable economic decision making tells us to choose an action when the benefits are greater than the costs

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Cost-benefit analysis

Front 22

People's thoughts about the future products that enhance each other and are used together

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Expectations

Front 23

Extra benefits gained from purchasing a good or service

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Marginal benefit

Front 24

Willingness and ability to purchase a product or service

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Demand

Front 25

Total demand for a product or service by all consumers

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Market demand

Front 26

Graph listing products being purchased with all prices on the vertical axis and quantities on the horizontal axis

Back 26

Demand curve

Front 27

Products that enhance each other and are used together

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Complements

Front 28

Each change in price causes a relatively larger change in quantity demanded

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Elastic demand

Front 29

Works together with demand to set prices

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Supply

Front 30

A knowledge of demand is important for this type of economic system to work

Back 30

Market economy

Front 31

The number of ________ will have an impact on demand, causing it to increase or decrease

Back 31

Consumers

Front 32

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

Back 32

Government involvement

Front 33

Private ownership of property and resources; Competition is prevalent resulting in many market choices

Back 33

Free Market Economy

Front 34

Private ownership of property and resources; Competition is prevalent resulting in many market choices

Back 34

Free Market Economy

Front 35

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

Back 35

Mixed Economy

Front 36

Central government ownership of property and resources

Back 36

Command Economy

Front 37

People have the same type of work as their parents and grandparents

Back 37

Traditional