Essay on Economics and Economy Market Economy

Submitted By rgut1195
Words: 730
Pages: 3
Open Document
Absolute advantage- the advantage conferred by the ability to produce more of a good or service with a given amount of time and resource; not the same thing as comparative advantage
Aggregate Output- the economy’s total production of final goods and services for a given time period, usually a year. Real GDP is the numerical measure of aggregate output typically used by economists.
Business Cycle-the short-run alternatives alternation between economic downturns, known as recessions, and economic upturns known as expansions.
Capital- manufactures goods used to make other goods and services
Comparative Advantage- the advantage conferred if the opportunity cost of producing the good or service is lower for another producer
Deflation- a fall in the overall level of prices
Depression- a very deep and prolonged downturn
Economic Aggregates- economic measures that summarize data across different markets for goods, serices, workers, and assets
Economic Growth- an increase in the maximum amount of goods and services an economy can produce
Economics- the study of scarcity and choice
Economy- a system for coordinating a society’s productive and consumptive activities
Employment- the total number of people currently employed for pay in the economy, either full-time or part-time
Entrepreneurship- the efforts of entrepreneurs in organizing resources for production, taking risks to create new enterprises, and innovating to develop new products and production processes.
Expansions- period of economic upturn in which output an employment are rising; most economic numbers are following their normal upward trend; also referred to as recovery
Gains from trade- An economic principle that states that by dividing tasks and trading, people can get more of what they want through trade then they could if they tried to be self sufficient
Individual Choice- the decision by an individual of what to do, which necessarily involves a decision of what not to do.
Inflation- a rise in the overall level of prices
Labor- the effort of workers
Labor Force- the number of people who are either actively employed for pay or unemployed and actively looking for work; the sum of employment and unemployment
Land- all resources that come from nature; such as minerals, timber, and petroleum
Macroeconomics- the branch of economics that is concerned with the overall ups and downs in the economy
Market Economy- an economy in which decisions of individual producers and consumers largely determine what, how, and for whom to produce, with little government involvement in the decisions.
Microeconomics- the branch of economy that studies how people make decisions and how these decisions interact
Model- a simplified representation of a real situation that is used to better understand real-life situations
Normative Economics- the branch of economics analysis that makes prescriptions about the way the economy should work
Opportunity Cost- the real cost of an item: what you must give up in order to get it
Other Things Equal Assumption- Ruling out
Show More

Related Documents: Essay on Economics and Economy Market Economy

Market Economics Vs Mixed Economy

------------------------------------------------- Market ECONOMY (USA) vs. MIxed economy (CANADA) REPORT CARD ------------------------------------------------- Market ECONOMY (USA) vs. MIxed economy (CANADA) REPORT CARD Austin Jarenz Brandon Konnor Austin Jarenz Brandon Konnor CANADA CANADA LITERACY RATE = 99% | REPORT GRADE = A | Canada’s government really values the importance of education. This affects the economy in many different ways. If you are a literate person…

Words 1493 - Pages 6

Rationale of Malaysia’s Economic System on Utility Maximization Essay

Malaysia’s Economic System Malaysia is a democratic country with excellent economic system. We are one the leading country in economic terms and being an example for the economy system we are using. In Malaysia, we are into mixed economy system. This economy system is the leading type of economic system that is used in most of the countries such as United States. Mixed economy system includes a mixture of capitalism and socialism. It combines private economic freedom, centralized economic planning…

Words 2178 - Pages 9

Similarities Between Capitalism And Socialism

terms “capitalism” and “socialism”, when you are studying economics. But, did you know that there are different models within capitalism and socialism? Yes, there are certain models based on whether the country’s economy is market oriented or socialist in nature. In the present times of recession and fiercely competitive market environment, it is very interesting to know the nature of different economies in the contemporary global economy. Before we learn about the different models of capitalism…

Words 3850 - Pages 16

Advantages Of Command Economy

Economics Unit One Essay Ruby Bamford 1st Period March, 4th Spring 2013 A mixed economy that contains the benefits of a market economy, but also the stability of a command economy will lead to a better society. A free Market has many benefits that allow economic freedom and growth, but because of the unpredictability in a market economy, there is a lack of government intervention for the welfare of the people in times of recession. A free market has many important benefits; economic…

Words 470 - Pages 2

Economics: Economics and Opportunity Cost Essay

Chapter 1: Economic Issues and Concepts 1.1 The Complexity of the Modern Economy • Economy: a system in which scares resources are allocated among competing uses. Economies tend to be complex systems and scares resources include land, labour and machines (capital). The Self-­‐Organizing Economy (Invisible…

Words 1560 - Pages 7

Market Economy Paper

Sidney Frey Darby Economics. Period 4 26 March 2014 A free market economy can be argued to be the best economy because of it encouraging private ownership of a business. People make money for themselves, and gets to keep the money they make. The market economy is the best economic system because the more you work, the more money you get to keep. Everyone makes their own decisions in their own interest. First, the market economy is the best economic system because it has a high degree of…

Words 504 - Pages 3

2.1 Explain How Economic Systems Attempt To Allocate Resources Effectively

2.1 Explain how economic systems attempt to allocate resources effectively. An economy is the way which a nation makes economic choices about how the nation will use its resources to produce and distribute goods and services and there are three main economic systems including command, market and mixed economy.  Command Economy: In a command economy, most resources are owned by the state and allocated by government plans and commands, people have to follow government plans and commands in…

Words 542 - Pages 3

Economic System and Commercial Trade Essay examples

The result of commercial trade transition 6. Conclusion and evaluation Bibliography 1. Introduction 1.1 General statement of the topic Nearly thirty years, great changes have taken place in the economic pattern of the world. There is rapid economic development in many developing countries, the most obvious reflected happened in China. With the promoting position of the People’s Republic of China in the world trade, understanding the commercial trade transition of China…

Words 1364 - Pages 6

Economics Essay

undoubtedly one of the strongest and unique economies of the world, ranking 2nd in, being the fastest growing economy in the world playing a large global role for all economies ., many societal and economic factors and aspects such as the Chinese government and society contribute to the Chinese economy. Australia is a quick growing economy. China and Australia’s economies are both very impactful and large economies. As of 20 China and Australia’s economic systems are structured completely differently…

Words 842 - Pages 4

Sociological Definition Of Capitalism In Chile

industries. Example from Chile: In 1973, the Chilean economy was in a frenzied state. Due to inflation, prices were more than doubled. This was caused by prices being fixed by the government. However, after the crisis in 1973, Chile underwent an extensive economic reform, where the goal was to open up their economy to the world and implement a capitalist economy. This reform paved the way for Chile to receive the title as the “Pioneer of Free-market economic reform”.…

Words 319 - Pages 2