ECO: Lesson 4 Vocabulary - Charly Adkinson | Library | Formative

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

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

Move the words in the column on the left to match the type of economic system to its correct description.

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

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

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