Economics Vocabulary

Free, mutually beneficial, and non-fraudulent exchange of goods and services between buyers and sellers in the marketplace

• Trade Off

• Voluntary Exchange

• Economic Utility

• Marginal Utility

Giving workers specific tasks with the end goal of workers becoming more productive using resources

• Division of Labor

• Factors of Production

• Human Resources

• Productive Resources

Inflation is

• the rate at which the general level of prices for goods and services rises and the value of the dollar decreases.

• the total value of all goods produced

• the decrease in money spent

• the amount of money in circulation

The 4 types of Unemployment's are...

• Temporary, Permanent, Voluntary, Involuntary

• Natural, Artificial, Economic, Social

• Long-term, Short-term, Part-time, Full-time

• Frictional, Structural, Cyclical, Seasonal

What are the 3 basic Economic questions?

• When to produce

• What to produce, How to produce, For whom to produce

• Why to produce

• Where to produce

Scarcity is

• the abundance of resources to meet limited wants

• the limited availability of resources to meet unlimited wants

• the process of creating more resources than needed

• the equal distribution of resources among all individuals

What condition has been reached when quantity supplied equals quantity demanded?

• Supply and demand

• Excess demand

• Equilibrium/market clearing

• Price floor

The concept of opportunity cost is best described as

• A) The cost of the next best alternative foregone

• B) The total cost of all alternatives

• C) The cost of producing one more unit of a good

• D) The cost of all resources used in production

What is the primary function of money in an economy?

• A) To act as a medium of exchange

• B) To serve as a tool for barter

• C) To create inflation

• D) To measure the wealth of a nation

Which of the following best describes a mixed economy?

• A) An economy with no government intervention

• B) An economy where both private and public sectors play a role

• C) An economy based solely on agriculture

• D) An economy that relies only on technology