Economics Mixed Economy Study Cards

Enhance Your Learning with Economics - Mixed Economy Flash Cards for quick learning



Economics

The study of how individuals, businesses, and governments make choices about the allocation of scarce resources to satisfy unlimited wants and needs.

Economic Systems

The way societies organize the production, distribution, and consumption of goods and services.

Mixed Economy

An economic system that combines elements of both market and planned economies, allowing for private ownership and government intervention.

Government Intervention

Actions taken by the government to influence or control economic activities, such as regulations, taxes, subsidies, and public spending.

Market Forces

The interaction of supply and demand in a market, determining the prices and quantities of goods and services.

Supply and Demand

The relationship between the quantity of a product that producers are willing to sell and the quantity that consumers are willing to buy at a given price.

Fiscal Policy

The use of government spending and taxation to influence the economy, particularly in relation to aggregate demand, employment, and inflation.

Monetary Policy

The control of the money supply and interest rates by a central bank to stabilize the economy, control inflation, and promote economic growth.

International Trade

The exchange of goods and services between countries, allowing for specialization, increased efficiency, and access to a wider range of products.

Income Distribution

The way income is divided among individuals or households in a society, often measured by indicators such as the Gini coefficient.

Economic Growth

An increase in the production of goods and services over time, often measured by changes in real GDP.

Inflation

A sustained increase in the general price level of goods and services in an economy over time, reducing the purchasing power of money.

Unemployment

The state of being without a job, often measured by the unemployment rate, which is the percentage of the labor force that is unemployed.

Public Goods and Services

Goods and services provided by the government for the benefit of the public, such as national defense, infrastructure, and public education.

Externalities

The unintended consequences of economic activities that affect third parties, either positively (positive externality) or negatively (negative externality).

Market Failures

Situation in which the allocation of goods and services by a free market is not efficient, often due to externalities, public goods, or imperfect competition.

Economic Indicators

Statistics used to measure the performance of an economy, such as GDP, CPI, unemployment rate, interest rates, and exchange rates.

Gross Domestic Product (GDP)

The total value of all final goods and services produced within a country's borders in a given period of time, usually a year.

Consumer Price Index (CPI)

A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Unemployment Rate

The percentage of the labor force that is unemployed and actively seeking employment.

Interest Rates

The cost of borrowing money or the return on investment, often influenced by central bank policies and market forces.

Exchange Rates

The value of one currency in terms of another, determining the prices of imports and exports and affecting international trade.

National Debt

The total amount of money that a government owes to its creditors, resulting from budget deficits over time.

Budget Deficit

The amount by which government spending exceeds revenue in a given period, often financed by borrowing.

Trade Deficit

A situation in which the value of a country's imports exceeds the value of its exports, resulting in a negative balance of trade.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often measured by indicators such as GDP per capita and HDI.

Poverty and Inequality

The state of being extremely poor and the unequal distribution of income and wealth among individuals or groups in a society.

Globalization

The increasing interconnectedness and interdependence of countries through trade, investment, technology, and cultural exchange.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, balancing economic, social, and environmental considerations.

Economic Policies

Actions taken by governments to influence or control economic activities, such as fiscal policy, monetary policy, and trade policy.

Taxation

The levying of taxes on individuals, businesses, and goods to generate revenue for government spending and to influence economic behavior.

Government Spending

The use of public funds by the government to finance its activities and provide public goods and services, often through taxation or borrowing.

Regulation

The imposition of rules and restrictions by the government on economic activities to protect consumers, promote competition, and achieve social objectives.

Subsidies

Financial assistance or incentives provided by the government to support certain industries, products, or activities, often to promote economic growth or address market failures.

Tariffs and Quotas

Taxes or restrictions imposed by the government on imported goods and services to protect domestic industries, regulate trade, or generate revenue.

Monopolies

A market structure in which a single firm dominates the industry, often leading to higher prices, reduced competition, and potential abuse of market power.

Oligopolies

A market structure in which a few large firms dominate the industry, often leading to limited competition and strategic behavior.

Competition

The rivalry among sellers in a market, leading to lower prices, improved quality, and innovation, benefiting consumers and promoting economic efficiency.

Labor Market

The market in which individuals and businesses interact to determine wages, employment levels, and working conditions.

Wages and Salaries

The payments received by workers in exchange for their labor, often determined by supply and demand in the labor market.

Productivity

The amount of output produced per unit of input, such as labor or capital, often measured as output per hour worked.

Economic Efficiency

The optimal allocation of resources to maximize the production of goods and services, often measured by the absence of waste or inefficiency.

Economic Equity

The fairness or justice in the distribution of economic benefits and burdens among individuals or groups in a society.

Economic Stability

The absence of excessive fluctuations in economic activity, such as inflation, recession, or financial crises, promoting confidence and predictability.

Economic Freedom

The ability of individuals and businesses to make economic decisions without interference or coercion, often measured by indicators such as property rights, rule of law, and ease of doing business.