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

The Five Resources

The Factors of Production

The Circular Flow Model

Production Possibilities Frontier

1

A good

A factor market

A service

An incentive

1

A good

A factor market

A service

An incentive

1

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

1

Circular flow model

Factor endowments

Laissez-faire economics

Centrally planned economy

1

1

Laissez-faire economics

Traditionalist economics

Socialist economics

Communist economics

1

1

Economic models

Incentives

Production costs

Factor endowments

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

The Five Resources

The Factors of Production

The Circular Flow Model

Production Possibilities Frontier

A good

A factor market

A service

An incentive

A good

A factor market

A service

An incentive

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

Circular flow model

Factor endowments

Laissez-faire economics

Centrally planned economy

Laissez-faire economics

Traditionalist economics

Socialist economics

Communist economics

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

Economic models

Incentives

Production costs

Factor endowments

Shortage

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

Trade-off

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

Opportunity cost

The option you gave up

Microeconomics

The value of the option you gave up

Macroeconomics

When a resource is near extinction

Scarcity

When a resource is temporarily unavailable

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

Traditional economy

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

TINSTAAFL

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

Absolute advantage

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

Comparative advantage

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

Socialism

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

Specialization

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

Communism

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