Economics Unit 2 Vocab

condition that occurs when someone can produce goods and services cheaper than other producers.

• Absolute Advantage

• Supply

• Scarcity

• Comparative Advantage

condition that occurs when someone can produce at a lower opportunity cost than other producers.

• Absolute Advantage

• Supply

• Comparative Advantage

• Opportunity Cost

the total amount of goods and services consumers are willing to buy at various prices.

• Consumers

• Demand

• Trade offs

• Supply

the price at which the quantity supplied in the market matches the quantity demanded in the market.

• Socialism

• Equilibrium Price

• Supply

• Specialization

an arrangement that bring sellers and buyers together for economic transactions.

• Market

• Economic System

• Demand

• Pure Competition

a market structure characterized by many producers supplying similar but varied products with few barriers to entry to the market.

• Incentives

• Absolute Advantage

• Monopolistic Competition

• Producers

a market structure characterized by one producer with a unique product and very high barriers to entry in the market.

• Socialism

• Monopoly

• Oligopoly

• Democracy

a market structure characterized by very few producers supplying similar products with high barriers to entry in the market.

• Oligopoly

• Market

• Firms

• Comparative Advantage

a market structure characterized by many producers supplying the same product and very few barriers to entry in the market.

• Pure Competition

• Absolute Advantage

• Communism

• Opportunity Cost

the development of skills and knowledge associated with one job or one area of expertise.

• Pure Competition

• Producer

• Specialization

• Consumer