Economics

Front

Not having enough of something.

Back

scarcity

Front

Rewards or penalties used to encourage people to behave in predictable ways.

Back

incentives

Front

Workers and their skills.

Back

human resources

Front

When the production of a job is broken down into many small jobs, each done by a different worker.

Back

division of labor

Front

When you make a choice, this is the second thing that you wanted the most.

Back

opportunity cost

Front

The study of how individuals and societies use their scarce resources to get goods and services.

Back

economics

Front

The kind of economic system that we have in our country. The "three big questions" are answered through the interaction of producers and consumers. The seller expects to charge as much as the buyer is willing to pay without looking for another seller and a less expensive price.

Back

market economy

Front

The government decides the answers to the "three big questions". They decide what will be produced, how it will be produced, and what the price will be.

Back

command economy

Front

The "three big questions" are answered by tradition or custom. People produce what they have always produced in a way that they have always produced it.

Back

traditional economy

Front

When individuals, regions, and companies produce certain kinds of goods or services.

Back

specialization