Untitled Quiz

The basic economic problem of having unlimited wants but limited resources.

The study of how society manages its scarce resources.

Getting the most from our scarce resources with minimal waste.

Fair distribution of economic benefits among all members of society.

Making decisions by systematically weighing costs and benefits.

Giving something up to obtain something else.

The value of the best alternative forgone when making a choice.

Incremental adjustments to an existing plan.

Factors that motivate people to act.

Economic system where prices are determined by interactions of buyers and sellers.

The ability of an individual to own and exercise control over scarce resources.

How self-interested market participants unknowingly contribute to societal well-being.

When markets fail to efficiently allocate resources.

When one person's actions affect the well-being of bystanders.

The ability of a single person or group to influence market prices.

The quantity of goods and services produced from each unit of labor input.

A general increase in the overall level of prices in the economy.

Fluctuations in economic activity, including periods of growth and recession.

The value of the best alternative forgone, such as potential income from a full-time job.

Individuals and countries can specialize in what they do best and trade for goods and services they don't produce.

Prices communicate costs and benefits, providing signals to producers and consumers to make efficient decisions.

Externalities (e.g., pollution) and market power (e.g., monopolies)

Higher productivity leads to higher incomes and a better standard of living.

Rapid growth in the quantity of money printed.

In the short run, increasing the quantity of money stimulates spending, causing a temporary decrease in unemployment and an increase in inflation.

By protecting property rights, regulating externalities, and promoting competition.

Policy changes can lead to results that were not anticipated or intended.

Both parties to a voluntary trade can benefit because they specialize in what they do best and exchange for what they need.