ECO: Lesson 4 Vocabulary

Last updated almost 5 years ago
10 questions
1

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

Draggable itemCorresponding Item
Trade-off
Behavior and decision making by small units such as individuals and firms
Microeconomics
Behavior and decision making by large units such as governments; the economy as a whole
Scarcity
The option you gave up
Macroeconomics
The value of the option you gave up
Opportunity cost
When a resource is near extinction
Shortage
When a resource is temporarily unavailable
1

Land, labor, capital, and entrepreneurship are also known in economics as...

1

What is the image an example of?

1

What is this image an example of?

1

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

Draggable itemCorresponding Item
Mixed economy
The factors of production are controlled by the government and production decisions are made by the government
Command economy
The factors of production are owned by indivduals and production decisions are determined by the laws of supply and demand
Traditional economy
The economy relies on customs, history, and time-honored beliefs.
Market economy
It protects private property, follows the laws of supply and demand, and allows government intervention for consumer protection
1

What is the other term that is used to describe a command economy?

1

What is the diagram in this image called in economics? Type your answer below.

1

What is the economic idea that Adam Smith is describing in the passage below?

1

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

Draggable itemCorresponding Item
Specialization
Little private property, almost all factors of production are owned and controlled by the state; redistribution of wealth
Socialism
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
Communism
It is the ability to produce goods more efficiently than anyone else
Absolute advantage
It is the ability to produce goods at a lower cost than anyone else
Comparative advantage
When an economy focuses on the goods/services which it is most suited to produce
1

What do economists use to make economic predictions about the real world?