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.

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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

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

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

Draggable item		Corresponding Item
Communism		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
Specialization		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
Absolute advantage		When an economy focuses on the goods/services which it is most suited to produce

Microeconomics

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

Shortage

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

Trade-off

The option you gave up

Scarcity

The value of the option you gave up

Opportunity cost

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

Communism

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

Specialization

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

Absolute advantage

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