Economics - Regents Level Vocabulary Chapter 1 Section 1: Need want economics Goods services scarcity Shortage factors of production land Labor capital physical capital Human capital entrepreneur Section 2: Trade-off guns or butter opportunity cost Thinking at the margin Section 3: Production possibilities curve production possibilities frontier Efficiency underutilization cost Law of increasing costs Chapter 2 Section 1: Economic systems factor payments patriotism Safety net standard of living traditional economy Market economy centrally planned economy command economy Mixed economy Section 2: Market specialization household Firm factor market profit Product market self-interest incentive Competition consumer sovereignty Section 3: Socialism communism authoritarian Collective heavy industry Section4: Laissez faire private property free enterprise Continuum transition privatize Chapter 3 Section 1: Profit motive open opportunity private property rights Free contract voluntary exchange competition Interest group public disclosure laws public interest Section 2: Macroeconomics microeconomics gross domestic product (GDP) Business cycle work ethic technology Section 3: Public good public sector private sector Free rider market failure externality Section 4: Poverty threshold welfare cash transfers In-kind benefits Chapter 4 Section 1: Demand law of demand substitution effect Income effect demand schedule market demand schedule Demand curve Section 2: Ceteris paribus normal good inferior good Compliments substitutes Section 3: Elasticity of demand inelastic elastic Unitary elastic total revenue Chapter 5 Section 1: Supply law of supply quantity supplied Supply schedule variable market supply schedule Supply curve market supply curve elasticity of supply Section 2: Marginal product of labor increasing marginal returns diminishing marginal returns Fixed cost variable cost total cost Marginal cost marginal revenue operating cost Section 3: Subsidy excise tax regulation Chapter 6 Section 1: Equilibrium disequilibrium excess demand Excess supply price ceiling price floor Rent control minimum wage Section 2: Surplus shortage search costs Section 3: Supply shock rationing black market Spillover costs Chapter 7 Section 1: Perfect competition commodity barrier to entry Imperfect competition start-up costs Section 2: Monopoly economies of scale natural monopoly Government monopoly patent franchise License price discrimination market power Section 3: Monopolistic competition differentiation non-price competition Oligopoly price war collusion Price fixing cartel Section 4: Predatory pricing antitrust laws trust Merger deregulation Chapter 8 Section 1: Business organization sole proprietorship business license Zoning law liability fringe benefit Section 2: Partnership general partnership limited partnership Limited liability partnership (LLP) articles of partnership uniform partnership act (UPA) Section 3: Corporation stock closely held corporation Publicly held corporation bond certificate of incorporation Dividend horizontal merger vertical merger Conglomerate multinational corporation (MNC) Section 4: Business franchise royalty cooperative Consumer cooperative service cooperative producer cooperative Nonprofit organization professional organization business association Trade association Chapter 9 Section 1: Labor force learning effect screening effect Contingent employment Section 2: Derived dividend productivity equilibrium wage Unskilled labor semi-skilled labor skilled labor Professional labor glass ceiling labor union Featherbedding Section 3: Strike right-to-know law blue-collar worker White-collar worker collective bargaining mediation Arbitration Chapter 10 Section 1: Money medium of exchange barter Unit of account store of value currency Commodity money representative money fiat money Section 2: Bank national bank bank run Greenback gold standard Federal Reserve system Central bank member bank Federal Reserve note Great depression Federal Deposit Insurance Corporation (FDIC) Section 3: Money supply liquidity demand deposit Money market mutual fund fractional reserve Banking default mortgage Credit card interest principal Debit card creditor .