Quarter 4 - Civics

opportunity cost

• the most desirable alternative given up as the result of a decision
• Fluctuations in economic activity, such as employment and production
• A general and progressive increase in prices
• the ability to produce a good using fewer inputs than another producer

Trade-offs

• two goods that are bought and used together
• A situation in which quantity supplied is greater than quantity demanded
• all natural resources used to produce goods and services
• Alternatives that must be given up when one is chosen rather than another

Scarcity

• Alternatives that must be given up when one is chosen rather than another
• Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.
• Limited quantities of resources to meet unlimited wants
• income

command economy

• An economic system in which the government controls a country's economy.
• land, labor, capital, entrepreneurship
• the most desirable alternative given up as the result of a decision
• all natural resources used to produce goods and services

Mixed Economy

• an economic system combining private and public enterprise.
• the most desirable alternative given up as the result of a decision
• government-imposed limits on the prices that producers may charge in the market
• a market structure in which a large number of firms all produce the same product

Traditional Economy

• An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.
• C+I+G+(X-IM)
• A slowdown in a nation's economy
• a market structure in which many companies sell products that are similar but not identical

market economy

• Fluctuations in economic activity, such as employment and production
• the process of starting, organizing, managing, and assuming the responsibility for a business
• Economic decisions are made by individuals or the open market.
• A situation in which quantity demanded is greater than quantity supplied

incentive

• producers offer more of a good as its price increases and less as its price falls; POSITIVE
• a reason for doing something; something that stimulates action
• Measures the number of people who are able to work, but do not have a job during a period of time.
• income

factors of production

• land, labor, capital, entrepreneurship
• all natural resources used to produce goods and services
• frictional, structural, cyclical
• government-imposed limits on the prices that producers may charge in the market

Land

• Government policy that attempts to manage the economy by controlling taxing and spending.
• the process of starting, organizing, managing, and assuming the responsibility for a business
• a graph of the relationship between the price of a good and the quantity supplied
• all natural resources used to produce goods and services