Term
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Definition
| All production is self Production. No money. Consumption is limited only be individuals capacity and resource. Primary cost of own production and consumption is Opportunity Cost. |
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Term
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Definition
| Doing one thing, but missing out on something else. IE doing homework, but missing out on the party. Missed opportunity. |
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Term
| Centrally Planned Economies |
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Definition
| All production prescribed by designated authority. Little or no private ownership. Distribution is prescribed by authority. |
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Term
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Definition
| Private Ownership. resources are directed by exchange. Exchange Facilitated by money. Consumption only limited to the extant that you have enough to exchange for what you desire. |
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Term
| Double Coincidence of wants |
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Definition
| Problem caused by the improbability that the wants needs or events that motivate a transaction is occuring at the same place. IE a bar paying a musician in food and drinks, won't help the musician pay rent. |
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Term
| Problems with island Economy |
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Definition
| No opportunity for specialization. prices equivalent with time and effort, can't be divisable |
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Term
| Problems with centrally planned economies |
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Definition
| Without property rights, potential for favoritism is great. Control of resources difficult to maintain, ie black market. New ideas must impress authority before production can occur. |
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Term
| Problems with market economies |
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Definition
| Poor information, buyer/seller know differently about the good of the product. Monopolies |
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