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City Upon a Hill A.A

City Upon a HIll Appendix A vocabulary

QuestionAnswer
Efficiency A goal for economic systems to produce the most goods for the most people.
Equity A goal for economic systems to distribute goods and rewards fairly.
Freedom A goal for economic systems to preserve the liberty of the people
Economic System A society’s structure for making and distributing goods and services.
Efficient Economy An economy in which all benefits are maximized to the point that one party cannot increase their benefits without decreasing the benefits of others.
Scarcity Economic condition where resources and supply cannot meet all demands, and therefore decisions must be made about which demands to meet.
Opportunity Cost The value of the best alternative not chosen
Law of Comparative Advantage Economic principle in which producers specialize in the production of goods where they have the lowest opportunity cost.
Other Terms (Found in Chapter 4 flashcards); command system, specialization, perfect competition, law of demand, law of supply, equilibrium price, role of profits, and role of prices.
Created by: jaredririe
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