Eco Unit 1: Intro to Eco

Front

Scarcity

Back

Unlimited demand for limited resources.

Front

Choice

Back

A decision made or a course of action taken when faced with a set of alternatives.

Front

Opportunity Cost

Back

The cost of the next best alternative use of money, time, or resources when one choice is made rather than another.

Front

Production-Possibilities Curve

Back

A curve showing the different combinations of two goods or services that can be produced in a full-employment, full-production economy where the available supplies of resources and technology are fixed.

Front

Equilibrium Price

Back

The price at which the quantity demanded equals the quantity supplied. Also known as Market Price.

Front

Surplus

Back

A situation in which the quantity supplied is greater than the quantity demanded.

Front

Shortage

Back

A situation in which the quantity supplied is less than the quantity demanded.

Front

Supply Non-Price Determinants

Back

Factors that can cause a shift in the supply curve. Examples include changes in resources, government involvement, and changes in the price of a related good.

Front

Regulations

Back

Rules that determine how a good is produced (e.g., back-up cameras in all new cars).

Front

Subsidies

Back

A grant or contribution of money made by a government to support the production of a good.