Transcript File

1.
Command Economy- An economy in which most economic issues of production
and distribution are resolved through central planning and control.
2.
Consumer- People who use goods and services to satisfy their personal needs.
3.
Market Economy- An economy that relies on a system of market prices to
allocate (distribute) goods and services based on an individuals choice.
4.
Producers- People and firms that use resources to make goods and services.
5.
Resources- used to produce goods and services: land or natural resources, human
resources (including labor and entrepreneurship), and capital.
6.
Scarcity- human wants are unlimited; resources are limited.
1.
Allocation- An amount or portion of a resource assigned to a particular recipient.
2.
Command Economy- An economy in which most economic issues of production and distribution
are resolved through central planning and control.
3.
Consumer- People who use goods and services to satisfy their personal needs and not for resale
or in the production of other goods and services.
4.
Consumer Sovereignty- The notion that consumers are "king" of the economy because they're
the ones who will ultimately determine what goods are produced and how our limited resources
are used.
5.
Market Economy- An economy that relies on a system of interdependent market prices to
allocate goods, services, and productive resources and to coordinate the diverse plans of
consumers and producers, all of them pursuing their own self-interest.
6.
Producers- People and firms that use resources to make goods and services.
7.
Resources- The basic kinds of resources used to produce goods and services: land or natural
resources, human resources (including labor and entrepreneurship), and capital.
8.
Scarcity- The condition that exists because human wants exceed the capacity of available
resources to satisfy those wants; also a situation in which a resource has more than one
valuable use. The problem of scarcity faces all individuals and organizations, including firms and
government agencies.
1. Economic Efficiency- means not wasting scarce resources
by producing goods people want most.
2. Economic Equity- fairness in economic dealings. Providing
everyone with equal economic opportunities and
outcomes.
3. Economic Freedom- freedoms for consumers to decide
where to work and how to spend/save their incomes.
4. Economic Growth- increasing the production of goods
and services overtime.
5. Economic Stability- refers to stable prices and full
employment.
1. Income - Payments earned by households; may include
salaries, wages, and interest.
2. Interest - Money paid regularly, at a particular rate
(percentage), for the use of borrowed money.
3. Investing - The process of putting money someplace with
the intention of making a financial gain. EX. Stock Market
4. Savings - Money set aside for a future use that is held in
easily-accessed accounts, such as savings accounts.
1. Incentives- Any reward or benefit, such as money,
advantage or good feeling, that motivates people to do
something.
2. Opportunity Cost- The second-best alternative that must
be given up when you choose to do something else.
3. Voluntary Exchange- Trading goods and services with
other people because both parties expect to benefit from
the trade.
4. Scarcity- human wants are unlimited; resources are
limited.
5. Allocation- An amount or portion of a resource assigned
to a particular recipient.
1. P.A.C.E.D.- The steps that an individual must take to make
an informed decision using the 5-step decision-making
model.
2. Five-Step Decision-Making Process- a strategy that allows
individuals to consider all possible alternatives so that they
can make an informed decision.
3. Criteria- A principle or standard by which an alternative
may be judged or decided.
4. Goals- Something a person or organization plans to
achieve in the future; an aim or desired result.
5. Handy Dandy Guide- A resource that explains the
principles that make up the economic way of thinking.
1. Equilibrium- the point where supply equals demand for a product;
Where the hypothetical supply and demand curves intersect.
2. Supply- The amount of a good or service that producers are willing
to offer for sale at each possible price.
3. Demand- The quantity of a good or service that buyers are willing
and able to buy at all possible prices.
4. Quantity Supplied- The amount of a good or service sellers are
willing to offer at a given price.
5. Quantity Demanded- The amount of a good or service people will
buy at a given price.
6. Price- The amount of money that people pay when they buy a good
or service
7. Law of Supply- Law that states producers will supply more of a good
or service at higher price and less at a lower price.
8. Law of Demand- Law that states consumers will buy more of a good
or service at a lower price, and less at a higher price.