Econ and Gov Midterm Review

What is economic scarcity?

• The fact that it is hard to find a job

• The idea that everything has a cost

• a flaw in free market capitalism

• The idea that everything has a limited supply

This economic system has leaders telling others what to do. Some person or people control the economy.

• Traditional

• Command

• Market

• Limited

In this type of economic system, businesses produce what consumers want to buy

• Traditional

• Limited

• Timed

• Market

If an economy is producing inside its production possibilites curve, what might be happening?

• It is a communist nation

• Not enough information to answer

• It is a flawed system

• All resources are not being fully used

In a positive relationship

• When x goes up, y stays the same

• When x goes up, y goes up

• When y goes up x stays the same

• When x goes up y goes down

The idea that they government should stay out of the economy

• Laissez-Faire

• Socialism

• Republicanism

• Patriotism

The expansion and contraction of the economy over time

• Recession

• Business Cycle

• Competition

• Law of Demand

The amount of money for which someone will sell a unit of goods or services

• cost

• price

• profit

• scarcity

When you choose one thing you give up something else

• recession

• business cycle

• competition

• Opportunity cost

If a point is outside of the production possibilities curve

• It is not attainable

• It is not desireable

• It makes no sense

• There are no points on the outside