Unit 4: Economic systems, development and indexes

MYP 3 I & S

Economics

Study of people and choices

Opportunity cost

The cost vs. what you gain

Incremental Taxation

Amount of paid in tax corresponds to total income

Incentives

Specific motivation for doing something

Macroeconomics

study of production, employment, prices, and policies on a nationwide scale

Microeconomics

study of how consumers, workers, and firms interact to generate outcomes in specific markets personal/company level

Supply

The amount of product produced

Demand

The amount of product needed/wanted

Scarcity

There is not enough of something to go around

Consumer

The person that purchases a product and generates demand

Stores

Buy products from factories and sell the products to the consumers

Profit Margin

Stores sell products higher than cost of production to make a profit

Goods

A physical product purchased and used by the consumer

Services

When people sell their time/knowledge/effort and the consumer pays for the act of something

Taxes

Paid by all adults with income to pay for public services like education & healthcare

Black Market

Where you can get anything illegal or that you can´t find anywhere else