ECO: Lesson 4 Vocabulary

Last updated about 5 years ago

10 questions

1

Last updated about 5 years ago

10 questions

1

Move the words in the column on the left to match the term to its correct definition.

1

1

1

1

Draggable item		Corresponding Item
Traditional economy		The factors of production are controlled by the government and production decisions are made by the government
Market economy		The factors of production are owned by indivduals and production decisions are determined by the laws of supply and demand
Mixed economy

1

1

1

1

1

Draggable item		Corresponding Item
Scarcity		Behavior and decision making by small units such as individuals and firms
Opportunity cost		Behavior and decision making by large units such as governments; the economy as a whole
Microeconomics		The option you gave up
Shortage		The value of the option you gave up
Trade-off		When a resource is near extinction
Macroeconomics		When a resource is temporarily unavailable

Draggable item		Corresponding Item
Traditional economy		The factors of production are controlled by the government and production decisions are made by the government
Market economy		The factors of production are owned by indivduals and production decisions are determined by the laws of supply and demand
Mixed economy		The economy relies on customs, history, and time-honored beliefs.
Command economy		It protects private property, follows the laws of supply and demand, and allows government intervention for consumer protection

Draggable item		Corresponding Item
Absolute advantage		Little private property, almost all factors of production are owned and controlled by the state; redistribution of wealth
Specialization		The central government owns and controls all resources and means of production and makes all economic decisions
Communism		There is no such thing as a free lunch because someone pays for it at some point
TINSTAAFL		It is the ability to produce goods more efficiently than anyone else
Comparative advantage		It is the ability to produce goods at a lower cost than anyone else
Socialism		When an economy focuses on the goods/services which it is most suited to produce

Scarcity

Behavior and decision making by small units such as individuals and firms

Opportunity cost

Behavior and decision making by large units such as governments; the economy as a whole

Microeconomics

The option you gave up

Shortage

The value of the option you gave up

Trade-off

When a resource is near extinction

Macroeconomics

When a resource is temporarily unavailable

The economy relies on customs, history, and time-honored beliefs.

Command economy

It protects private property, follows the laws of supply and demand, and allows government intervention for consumer protection

Absolute advantage

Little private property, almost all factors of production are owned and controlled by the state; redistribution of wealth

Specialization

The central government owns and controls all resources and means of production and makes all economic decisions

Communism

There is no such thing as a free lunch because someone pays for it at some point

TINSTAAFL

It is the ability to produce goods more efficiently than anyone else

Comparative advantage

It is the ability to produce goods at a lower cost than anyone else

Socialism

When an economy focuses on the goods/services which it is most suited to produce