Economic Concepts Flashcards

Front

Scarcity

Back

Not enough resources to meet everyone’s wants. We must make choices.

Front

Opportunity Cost

Back

The value of the next best alternative you give up when you make a decision.

Front

PPC

Back

A graph that shows trade-offs in production and opportunity cost. On the curve = efficient.

Front

Command Economy

Back

Government makes decisions

Front

Pure Market

Back

Individuals make decisions

Front

Mixed Market

Back

Both government and individuals make decisions

Front

Circular Flow

Back

Households provide labor → Businesses pay wages. Government collects taxes and provides services.

Front

Law of Demand

Back

When price goes up, demand goes down.

Front

Law of Supply

Back

When price goes up, supply goes up.

Front

Market Equilibrium

Back

The price where supply and demand are equal.