Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
17 Cards in this Set
- Front
- Back
|
Scarcity |
Limited nature of societies resources |
|
|
Tradeoffs |
Making decisions requires trading off one goal against another |
|
|
Efficiency |
Property of society getting the most it can from scarce resources |
|
|
Equity |
Property of distributing economic prosperity fairly among society |
|
|
Opportunity cost |
Whatever must be given up to obtain some item |
|
|
Rationality |
Those who systematically and purposefully do the best they can to achieve their objective |
|
|
Marginal changes |
Small incremental adjustments to a plan of action |
|
|
Incentive |
Something that induces a person to act |
|
|
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 |
|
|
Property rights |
The liability of an individual to own and exercise control over scarce resources |
|
|
Invisible hand |
Participants in the economy are motivated by self interest and the invisible hand of the market place guides this self interest promoting general economic wellbeing |
|
|
Market failure |
Situation in which a market left on its own fails to allocate resources efficiently |
|
|
Externality |
The impact of one person's actions on the wellbeing of a bystander |
|
|
Market power |
Ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
|
|
Productivity |
Quality of goods and services produced from each hour of a workers time |
|
|
Standard of living |
Increased productivity positively correlates with increased standard of living |
|
|
Inflation and unemployment |
An increase in the overall level of prices in the economy by increased inflation which allows the government to influence employment rates. ^ money=^ spending =^ demand=^ need for workers to supply demand |
