Economic Systems Vocab

When an economy keeps growing over time.

• Sustainability

• Deregulation

• Rapid inflationary growth
• Income

items such as schools, defense, police and fire protection, parks, roads and street lighting provided by the government.

• Profit

• Equity

• Public Goods and Services

• Sustainability

money a person makes from working.

• salary
• profit
• income
• wage

when the market doesn’t provide a good or service society needs.

• Consumer surplus
• Supply chain disruption
• Market failure
• Market equilibrium

when your use of a good hurts or helps someone else.

• The theory of comparative advantage.
• Externality

• Definition

• The principle of supply and demand.

adding rules or laws established by the government such as taxes, tariffs, subsidies, Federal Reserve guidelines, environmental protections, safety guidelines, and consumer protection.

• International trade agreements.
• Regulations

• Private sector regulations.
• Government incentives and grants.

taking away rules or laws on an industry such as deregulation of transportation.

• Deregulation
• Regulation
• Transportation Tax
• Industry Oversight

An economy uses all of its resources to produce goods and services that are desired and does not waste resources on unwanted products.

• Inefficient economy
• Stagnant economy
• Overproducing economy
• Efficiency

fairness in the access to goods and services.

• Equity

• Limited access to resources.
• Unequal distribution of wealth.
• Restricted availability of services.

individuals indicate their choices by their spending decisions.

• Choices are indicated by social media interactions.
• Spending decisions are made by corporations, not individuals.
• Consumer Sovereignty

• Individuals express their preferences through voting.