Economics Concepts Flashcards

Front

Subsidy

Back

Financial assistance provided by the government to support or promote specific industries or activities.

Front

Capital

Back

Resources, such as machinery and money, used to produce goods and services.

Front

Mixed Economy

Back

An economic system that incorporates elements of both market and command economies.

Front

Goods

Back

Tangible products that can be bought or sold.

Front

Economize

Back

To make decisions that minimize costs and maximize efficiency.

Front

Market Failure

Back

A situation in which the allocation of goods and services is not efficient, often due to externalities or monopolies.

Front

Consumer

Back

An individual or group that purchases and uses goods and services.

Front

Opportunity Cost

Back

The value of the next best alternative forgone when making a decision.

Front

Free Contract

Back

The principle that individuals have the right to enter into agreements without coercion.

Front

Profit Motive

Back

The desire to earn a profit that drives individuals and businesses to engage in economic activities.