Economics Vocabulary

Economic system in which the 3 economic questions are answered by consumers and producers

• Market Economy

• Command Economy

• Traditional Economy

• Socialist Economy

When resources aren't being used to optimum efficiency

• Market Failure

• Production Incapacity

• Production Fracture

• Labor Issue

A uniform, commonly accepted payment in lieu of resources

• Medium of Exchange

• Common Currency

• Bartering

• Haggling

An economy in which private enterprise exists in combination with government regulation and promotion.

• Mixed Economy

• Market Economy

• Command Economy

• Traditional Economy

The next best alternative given up when a choice is made

• Opportunity Cost

• Marginal Cost

• Trade Off

• Exchange Cost

Unlimited wants intersecting with limited resources

• Scarcity

• Efficiency

• Opportunity Costs

• Shortages

Occurs when producers will not or cannot offer goods or services at current prices.

• Shortage

• Scarcity

• Opportunity Cost

• Inefficiency

The study of how people choose to use resources

• Economics

• Sociology

• Psychology

• Anthropology

A situation where the quantity demanded exceeds the quantity supplied

• Surplus

• Equilibrium

• Shortage

• Saturation

The cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• Opportunity Cost

• Sunk Cost

• Fixed Cost

• Variable Cost