Economics Midterm Vocabulary

Externality: A side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in cost of the goods or services involved.

This shows how a externality can be bad and good it can affect people around the system but not in the system.

Scarcity:A state of being scarce or in short supply.

There is a scarcity of water in some states.This explains that the world has a scarcity of water that is not there.

Economic Perspective: A view point that envisions individuals and actions.

Economic Perspective are looked upon the president and the people that run the government.

Rational Self Interest: Is the principal that an action is rational.

The school has a Rational Self Interest on the education of students.

Opportunity Cost:The loss of potential gain from other alternatives .

The companies that are out there have Opportunity Cost but sometimes hurts them.

Marginal Cost:The cost added by producing one additional unit of a product or service.

Prices at stores can be at the Marginal Cost.

Marginal Benefit:Is a additional satisfaction or utility.

The stores have to Marginalize so the can get benefits.

Marginal Analysis:Is and examination of the additional benefits of an activity.

In Pre Cal you have to use Marginal Analysis to get you the place you want to be or get answer.

Utility:A state of being useful

When I play soccer I become a Utility for the team.

Incentive:A thing that motivates.

Money can be a Incentive for many people especially me.

Monetary Incentive:Money

Every Sunday I Get my Monetary Incentive from people I help.

Non-Monetary Incentive:Rewards

For Christmas I get Non Monetary Incentive from all my family.

Supply: Make

The stores always have to make sure they have supply for the next day.

Mixed Economy: An economic system combing private and public.

You can say that the United States has a Mixed economy.

Demand:Ask authoritatively.

The Soviet Union is a Government that demands many thing that has to do with government.

Economics:The branch of knowledge concerned with production.

The Economics of the United States is now well developed.

Market: Advertise or promote

The United States is buy from a Market country.

Public goods: The benefit or well being of the public.

The stores sell products which are Public goods for the peoples.

Private costs:A producer or supplier cost of providing goods and services.

Small companies have a private cost when comes to purchasing or selling.

External cost:Occurs when producing or consuming a good or service imposes a cost upon a third party.

Companies External cost can be expensive because the amount of product they produce.

Private benefit: Is doctrine is derived from requirement.

Many company's that are small have private benefits.

External benefits: Occurs when producing or consuming a good causes a benefit to third party.

The food I bought was a External Benefit because I spend a lot of money on food.

Negative Externality: Is a cost that is suffered by a third party result of an economic transaction.

Being sad about something a product is being that the product is a Negative Externality.

Positive Externality: Is a benefit that is enjoyed by a third party as a result of an economic transaction.

There are products in stores that are positive externality because they go through third party.

Traditional Economy:The beliefs that help shape goods and services in the economy.

Canada and SouthAmerica are country's that have traditional economy due to ancestry.

Command Economy: An economy in which production and incomes are determine by the government.

You can find a command economy in the Soviet Union and North Korea.

Market Economy:A market which decides and pricing of goods and services.

A market economy can be found in the U.S. and the UK.

Mixed Economy: An economic system combing private and public enterprise.

Cuba has a mixed economy but is now visualize by the United States.

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