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Someone will probably choose generic brands when looking for at 2 brands of the same medication that has the same ingredients because it is usually cheaper.

}}Economy}}

A system for coordinating a society’s productive and consumptive activities.

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The analyzation system of how a country spends their time, resources, and money.

}}Market Economy}}

an economy in which the decisions of individual producers and consumers largely determine what, how, and for whom to produce, with little government involvement in the decisions

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The US has a mixed economy, but leans more to the Market Economy side.

}}Command Economy}}

the economy in which industry is publicly owned and a central authority makes production and consumption decisions

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The government places restrictions on certain goods such as nuclear weapons because they are dangerous to the population and regulations make the community safer.

}}Incentives}}

rewards or punishments that motivate particular choices

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If an item is buy one get one free, they are more likely to buy the item because they will get a better deal.

}}Property rights}}

establish ownership and grant individuals the right to trade goods and services with each other.

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Property rights are used for businesses, homes, charities, the government, etc.

}}Marginal Analysis}}

the study of the costs and benefits of doing a little more of an activity versus a little bit less

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You could compare the grade you would get if you studied for 4 hours vs 3 hours.

}}Resource}}

anything that can be used to produce something else

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Any natural substance would be considered a resource.

}}Land}}

all resources that come from nature

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Examples include minerals, timber, and petroleum.

}}Labor}}

the effort of workers

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Each person used a differing amount of labor or productivity working the same job.

}}Capital}}

manufactured goods also used to make other goods and services

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Examples include tools, machinery, etc.

}}Entrepreneurship}}

Starting a firm or business because their is a lack of efficiency in the current system or their is a need for the community that their is no solution to.

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One individual decides to start a business with a patented product because their product is better than others on the market.

}}Scarce}}

in short supply; when a resource isn’t available in sufficient quantities to satisfy all the various ways society wants to use it

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All resources are scarce.

}}Opportunity cost}}

the real cost of an item; the value of the next best alternative you must give up in order to get that item

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if you can only choose one snack and they cost the same amount of money, the enjoyment of the one you don’t choose is the opportunity cost.

}}Macroeconomics}}

branch of economics that is concerned with overall ups and downs of the economy

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Why is the state of the economy where it is and how did it get there?

}}Microeconomics}}

branch of economics that studies how individuals, households, and firms make decisions and how those decisions interact

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If a firm picks one advertisement option over another does it benefit them more or less?

}}Economic Aggregates}}

economic measure that summarize data across many different markets

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Different sets of data can be compared using these stipulations.

}}Positive Economics}}

branch of economics analysis that describes the way the economy actually works

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No opinions or judgement are used, analysis based on fact.

}}Normative economics}}

branch of economic analysis tat makes prescription on how the economy should work

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Judgement and opinions evaluated, not based on fact.

}}Trade-off}}

when you give up something in order to have something else

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If you are running late and choose to get breakfast, you now have a tardy pass but got breakfast.

}}Production Possibilities Curve}}

illustrates trade off that economy faces when they produce only 2 goods, shows maximum quantity of one goods that can be produced or each possible quantity of another good produced.

an economy can produce a maximum of 1200000 computers while producing a maximum of 900000 , phones or 30000000 computers and 0 phones.

}}Efficient}}

describes a market or economy in which there is no way to make anyone better off without making at least one person worse off

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Because the world is now focused on specialization, having markets with more efficiency is more common.

}}Productive Efficiency}}

achieved by economy if it produced on point of ppc

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An economy can produce a maximum of 1200000 computers while producing a maximum of 900000 phones.

}}Allocative Efficiency}}

achieved by an economy if it produces at the point along its production possibilities curve that makes consumers as well of as possible

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If a certain product is in more of a demand than another product a certain producer makes, they would want to continue to produce an ratio of products on the curve, but leaning more towards the product in great demand.

}}Trade}}

when, in a market economy individuals provide gods and services to others with goods and services in return

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I gave my neighbor 2 cups of flour when she needed it, so when my car broke down, she drove me to school.

}}Specialization}}

situation in which each person specializes in the task that he or she is good at doing

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I am good at reading so I am a teacher instead of a blacksmith.

}}Absolute advantage}}

the advantage conferred by the ability to produce more of a good or service with a given amount of time and resources; different to comparative advantage

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In this scenario, the company would be able to produce more of a good or service based on their efficiency when compared to a different company given the same amount of time and resources.

}}Comparative advantage}}

the advantage conferred by an individual if the opportunity cost of producing the good or service is lower for that individual than for other people

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When one entity can produce something by giving up less of the other option when compared to another entity that produces that item with less efficiency.

}}Circular flow Diagram}}

shows how money flows through the factors of production

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Anything that is sold has a circular flow diagram.

}}Household}}

a person or group of people who share income

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My parents and I are a household, and my dad is the only person who has a job.

}}Firm}}

organization that produces goods and services for sale

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Any business is a firm.

}}Product markets}}

where goods and services are bought and sold

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Places such as grocery store, goodwill, shop, etc. are product markets.