Economics Final Review

Front

the situation of having unlimited wants but limited resources

Back

Scarcity

Front

Opportunity Cost

Back

the most desirable alternative given up when a choice is made

Front

Implicit Costs

Back

the amount that could have been earned if a different path had been chosen.

Front

Explicit Costs

Back

the traditional out of pocket costs associated with making a decision

Front

Positive Incentive

Back

a reward

Front

Negative Incentive

Back

a punishment

Front

Free Market Economy

Back

The laws of supply and demand allocate resources, goods, and services with little government interference

Front

Command Economy

Back

All resources are owned and controlled by the government.

Front

Traditional Economy

Back

Everyone knows their role, there is little uncertainty.

Front

An increase in the income of consumers causes

Back

an increase in demand