ECONOMICS SEM 2 018-19

The resources used to make all goods & services are the

Something essential for survival is a

(blank) is shown by any point that appears inside the production possibilities frontier

The production possibilities frontier on a PPGraph shows max possible output 4 an economy &

The 3 fundamental economic questions each society must answer are

A graph that shows alternative combinations of an economy's resources to make products is a

A free market economy sometimes needs some govt intervention in order to

A financial gain made in a transaction

Econ system where individls decide 4 thmslves what to produce & sell w/o any govt intervention

Differences btwn econ systms arise frm ways each systm answrs prodctn & distribtn questions

an example of a shortage is limited amounts of

(blank) makes an economy more efficient

The principle that there are limited resources available to meet unlimited wants

Economic goal that is difficult to achieve in a pure free market system

an efficient economy is one that

An economic system in which the govt makes all the decisions on the 3 key economic questions is

This line on a PPC shows the max output an economy can produce

The incentive consumers have when buying goods is to

One example of thinking at the margin

Another name for centrally planned economy

A free market based economic system w/ limited govt involvement

Which factor of production is represented by unused soil, natural gas & water

Underutilization is

goal is to provide economic security for the ppl

The most desirable alternative given up as the result of a decision

Interactn btwn self-interest & competition that acts as a force 2 set price of goods & services

according to law of demand, what happens when prices go down

A thing/place that brings togthr buyers & sellers where goods/services sold 2 consumers

The choice governments face between spending money on military or domestic needs

This occurs temporarily when demand is currently higher than the average supply

This factor refers to the effort ppl devote to tasks for which they are paid

Which is an example of scarcity

law of increasing costs means when an economy increases the production of one item

Definition of Economics: The study of

The motivating force behind the free market is self-interest

According to economists all resources are

using resources in a way to maximize production of goods & services is known as

When the PPCurve shifts to the right, then output is increasing. This can be caused by

A(n) ______ is something we desire but that is not necessary for survival

types of decisions that can be made at the margin EXCEPT

Giving up other benefits for another when making choices

The regulating force in the marketplace is

North Korean economy is

Weakness of centrally planned economies

This factor refers to the knowledge & skills a worker gains through education & experience

Is a way in which a society decides to produce & distribute goods/services

The incentive producers have to sell their goods is

The goal of socialism is

This factor refers to all the natural resources used to produce goods and services

the decision making process of weighing the costs of producing +1 more unit of a good

The use of resources in such a way to maximize output

Where households purchase goods/services from firms & firms supply goods/services to households

This factor refers to human-made objects used to create other goods & services