Economics Word Scramble
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| Term | Definition |
| Microeconomics | Individual markets |
| Macroeconomics | Economy as a whole |
| Inflation | Rate of price increase |
| Laissez Faire | Free market |
| Utility | The value of a good/service - Total satisfaction from consuming it |
| Efficiency | All goods and FOPS in an economy are allocated to their most valuable uses |
| Scarcity | Unlimited wants, limited FOPS |
| Market | Where buyers and sellers meet to facilitate transactions |
| Monopoly | Market structure where a single seller/producer is in a dominant position of a industry/sector |
| Subsidy | Direct/indirect payment to individuals or firms from the government/targeted tax cut |
| Invisible hand | Metaphor for unseen forces that move the free market economy |
| Command economy | Planned economy, central government controls the means of production |
| Taxes | Mandatory payment or charge collected by local, state and national governments from individuals or businesses to cover costs of government funded goods/services |
| Interest | Price you pay to borrow money or the return earned on an investment |
| Actual output | Refers to current level of production |
| Potential output | Potential production depending on highest level of efficiency |
| GDP | Gross domestic product - Monetary value of all finished goods/services made within a country during a specific period |
| Circular flow of income | Model of how money moves through society |
| PPC | Production possibilities curve, represents different combinations of two goods produced |
| Behavioral economics | Relies on experiments and evidence of consumer behaviorq |
| Factor payments | Land --> Rent Labour --> Wages Capital --> Interest Entrepreneurship --> Profit |
| Opportunity cost | Opportunity lost |
| Leakages | Withdrawal of income from the flow: Savings, taxes, imports |
| Injections | Introduction of income into the flow: Investment, government spending, exports |
| Leakages > Injections | Economy shrinks |
| Leakages < Injections | Economy grows |
| Positive economics | Study of econ. based on scientific methods, models, hypotheses, theories, laws, etc |
| Normative economics | Identifies important econ, problems and prescribes what should be done to solve them |
| Example of P.E | Describe: Economic growth has increased from _ to _ in the last _ Explain: The increase in the price of _ has resulted in _ Predict: _ will happen |
| Example of N.E | Governments should raise taxes to fund new programs |
| Demand | Individual consumer's willingness/ability to buy goods/services at different prices at a specific time period |
| Ceteris paribus | All else being equal |
| Negative causal relationship | Price decreases, demand increases |
| Axes | Price Y --- Demand X |
| Law of demand | States that there is a negative causal relatipnship between a good's price and the quantity demand for it |
| Non price determinants of demand | Changes in income - Tastes and preferences - Future price expectations - Price of related goods - Size of market (Number of consumers) |
| Substitutes | Chocolate / gummy bears - Animal products / plant based products |
| Compliments | Phone / phone case - Fries / ketchup |
| Supply | Individual firm's willingness and ability to produce various quantities of goods/services at different prices during a specific time period |
| Law of supply | States that there is a positive causal relationship between a goods price and its quantity supplied in a particular time period |
| Non price determinants of supply | Subsidies and taxes - Technological advancements - Other related good prices (Joint + competitive) - Resource costs - Expectations of future prices - Size of market (Number of producers) |
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LimppuBiscuit
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