Economics praxis 5004
Micro Economics - answer The study of individual behavior in the economy, of the
components of the larger economy.
Macroeconomics - answer The study of the economy as a whole
opportunity cost - answerthe most desirable alternative given up as the result of a
decision
A market exists when: - answerWhen buyers exchange money for goods and services
from sellers
supply and demand - answerPrices go up when there is a shortage of a product
available, prices go down when there is a surplus
equilibrium price - answerThe quantity supplied of something equals the quantity of that
thing demanded
relative price - answerThe price of one good or service compared to the price of others
competition - answerLowers costs and prices and encourages producers to produce
more of what consumers are willing and able to buy.
Laissez-faire - answerIdea that government should play as small a role as possible in
economic affairs.
Capital - answerAccumulated money or goods available for use in producing more
money or goods
Capitalism - answerAn economic system based on private ownership of capital
Communism - answerGovernment owns all means of production and regulates the
economy
Socialism - answerGovernment only owns the major means of production and attempts
to equalize distribution of income
mixed economy - answermarket-based economic system with limited government
involvement
deficit spending - answerWhen a government spends more than it takes in and goes
into debt.
Micro Economics - answer The study of individual behavior in the economy, of the
components of the larger economy.
Macroeconomics - answer The study of the economy as a whole
opportunity cost - answerthe most desirable alternative given up as the result of a
decision
A market exists when: - answerWhen buyers exchange money for goods and services
from sellers
supply and demand - answerPrices go up when there is a shortage of a product
available, prices go down when there is a surplus
equilibrium price - answerThe quantity supplied of something equals the quantity of that
thing demanded
relative price - answerThe price of one good or service compared to the price of others
competition - answerLowers costs and prices and encourages producers to produce
more of what consumers are willing and able to buy.
Laissez-faire - answerIdea that government should play as small a role as possible in
economic affairs.
Capital - answerAccumulated money or goods available for use in producing more
money or goods
Capitalism - answerAn economic system based on private ownership of capital
Communism - answerGovernment owns all means of production and regulates the
economy
Socialism - answerGovernment only owns the major means of production and attempts
to equalize distribution of income
mixed economy - answermarket-based economic system with limited government
involvement
deficit spending - answerWhen a government spends more than it takes in and goes
into debt.
