ECON Essential Vocab

the fact that there are limited amount of resources and unlimited wants and needs

• scarcity

• economics

• free market economy

• equilibrium

the study of how people seek to satisfy their needs and wants by making choices

• economics

• regulation

• shortage

• centrally planned economy

people who risk their own livelihood and decide how to combine resources to create new goods and services

• entrepreneur

• efficiency

• demand

• normal goods

resources that are used to make goods and services

• factors of production

• supply

• commodity

• monopoly

use of resources in such as way as to maximize the output of good and services

• efficiency

• market

• gross domestic product

• inferior goods

level of economic prosperity

• standard of living

• microeconomics

• mixed economy

• surplus

any arrangement that allows buyers and sellers to exchange goods and services

• market

• centrally planned economy

• inferior goods

• economies of scale

economic system where decisions on three key economic questions are based on voluntary exchange in the market

• free market economy

• centrally planned economy

• mixed economy

• microeconomics

economic system where the government makes all decisions on the three economic questions

• centrally planned economy

• macroeconomics

• mixed economy

• free market economy

economics system where both the government and the free market make decisions on the three economics questions

• mixed economy

• free market economy

• centrally planned economy

• elasticity of demand