Economics Unit 1 Flashcards

Front

Economics

Back

The science of choice and the study of how people use their limited resources to satisfy their unlimited wants and needs.

Front

Scarcity

Back

The condition of unlimited wants and limited resources.

Front

Opportunity Cost

Back

cost of an item or activity is the value of the best alternative you must pass up.

Front

Marginal Cost

Back

Extra cost of decisions made

Front

Marginal Benefit

Back

The extra benefits of a decision made.

Front

Utility

Back

means usefulness and is the satisfaction you get from a good or service.

Front

Command Economy

Back

an economic system that has a central authority (usually government) make all economic decisions and answer all 3 basic economic questions

Front

Traditional Economy

Back

an economic system that function by habits and customs (the way it has always been done)

Front

Market Economy

Back

an economic system where all economic decisions made by private individuals or relies on competition and risk taking.

Front

Mixed Economy

Back

An economic system that combines elements of market and command systems.