- Shuffle
Toggle OnToggle Off
- Alphabetize
Toggle OnToggle Off
- Front First
Toggle OnToggle Off
- Both Sides
Toggle OnToggle Off
Front
How to study your flashcards.
Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key
Up/Down arrow keys: Flip the card between the front and back.down keyup key
H key: Show hint (3rd side).h key
PLAY BUTTON
PLAY BUTTON
47 Cards in this Set
- Front
- Back
|
Something Essential for survival
|
Need
|
|
Something that people desire but that is not necessary for survival
|
Want
|
|
The physical objects that someone produces
|
Good
|
|
The actions or activities that one person performs for another
|
Service
|
|
The principle that limited amounts of goods and services are available to meet unlimited wants
|
Scarcity
|
|
the study of how people seek to satisfy their needs
|
Economics
|
|
A situation in which consumers want more of a good or service than producers are willing to make
|
Shortage
|
|
The human-made objects used to create other goods and services
|
Physical Capital
|
|
the knowledge and skills a worker gains through education and experience
|
Human Capital
|
|
The act of giving up on benefit in order to gain another, greater benefit
|
Trade-ff
|
|
the most desirable alternative given up as the result of a decision
|
Oppotunity cost
|
|
The extra benefit of adding one unit
|
Marginal benefit
|
|
The use of resources in such a way as to maximize the output of goods and services
|
Efficiency
|
|
the extra cost of adding one unit
|
Marginal Cost
|
|
The income people receive in return for supplying factors of production
|
Factor Payment
|
|
A set of government programs that protect people who face unfavorable economic conditions
|
Safety Net
|
|
The process of bringing new methods, products, or ideas into use
|
Innovation
|
|
An economic system that relies on habit, custom, or ritual to decide the 3 economic question
|
Traditional economy
|
|
The concentration of the productive efforts of individuals and businesses on a limited number of activities
|
Specialization
|
|
An economic system in which decisions on the 3 economic questions are based on voluntary exchange in market
|
Free Market Economy
|
|
The arena of exchange in which firms purchase the factors of production from households
|
Factor Market
|
|
The arena of exchange in which households purchase goods and services from firms
|
Product Market
|
|
The struggle among producers fro the dollars of consumers
|
Competition
|
|
Another name for a centrally planned economy
|
Command Economy
|
|
A range of economic and political systems based on the belief that wealth should be distributed evenly
|
Socialism
|
|
Political system in which the government owns and controls all resources and means of production
|
Communism
|
|
Describes a form of government that limit individual freedoms and requires strict obedience
|
Authoritarian
|
|
The doctrine that government generally should not intervene in the marketplace
|
Laissez Faire
|
|
A market-based economic system in which the government is involved to some extent
|
Mixed economy
|
|
The process of selling businesses or services operated by the government to individual investors
|
Privatization
|
|
The principle that people may decide what when and how they want to buy and sell
|
Voluntary Exchange
|
|
The right of a government to take private property for public use
|
Eminent Domain
|
|
Gross domain product- the total value of all final goods and services produced in a country in a given year
|
GDP
|
|
A proposed law submitted directly to the public
|
Referndum
|
|
Situation in which older products and processes become out-of -date
|
Obsolescence
|
|
a government license that gives the inventor of a new product the exclusive right to produce and sell it
|
Patent
|
|
A government license that grants an author exclusive rights to sell and publish creative works
|
Copyright
|
|
A shared good or service for which it would be inefficent or impractical to make consumers pay
|
Public Good
|
|
A situation in which the free market, operating on its own, does not distribute resources efficently
|
Market Failure
|
|
An economic side effect of a good or service that generates benefits or costs to someone other than person deciding
|
Extenality
|
|
Government aid to the poor
|
Welfare
|
|
A financial award given by a government agency to a private individual or group in order to carry out a task
|
Grant
|
|
The use of fewer resources than an economy is capable of using
|
Underutilization
|
|
A person who decides how to combine resources to create goods and services
|
Entrepreneur
|
|
What are the 3 factors of production?
|
-Land
-Labor -Capital |
|
5 Characteristics of free enterprise system
|
-Profit Motive
-Open opportunity -Legal equity - Private Property -Freedom to buy & sell |
|
5 Economic goals of all societies
|
-Economic growth
-Economic freedom -Economic security -Economic equity -Economic efficiency |
