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Econ #1
Question | Answer |
---|---|
Scarcity | Condition caused by not meetings peoples demands |
Opportunity Cost | What a person gives up when they choose one thing over another |
Trade-off | Accepting less of one thing in order to receive more of another |
Economic Systems | The ways in which people deal with the problems of scarcity and opportunity cost |
Money | Anything that serves as a medium of exchange |
Markets | Arrangement that allows buyers and sellers to meet and exchange goods and services |
Supply | Different amounts of goods and services that will be offered at a certain price or time |
Demand | Various goods and services That will be purchased at a certain price or time period |
Competition | More than one buyer or seller in a market |
GDP | The market value of all final goods and services produced by an country in one year |
Unemployment | Number of people without a job that are actively seeking one |
Inflation | An increase in average price of all things in an economy |
Deflation | A decrease in the average price level of all products in an economy |
Monetary policy | Actions that affect the amount of money and the cost of credit available in the economy |
Fiscal policy | Changes in taxes or government spending that are designed to affect demand |
Exchange Rate | The price of one nations currency in terms of anothers |
Capital | The tools, equipment, and factories used in the production of goods |
Factors of production | Things needed to produce any good or service |
Laissez-faire | No government interference in the economy |
Want | Not a basic need for survival |