Chapter 8 Flash Cards

Front 1

Economic Wants

Back 1

desires that can be satisfied by consuming a good, service, or leisure activity.

Front 2

Economic

Back 2

pertaining to the production, distribution, and use of income, wealth, and commodities.

Front 3

Non Economic wants

Back 3

These are as opposed to economic losses, such as loss of wages, medical bills, and damage to property.

Front 4

Utility

Back 4

a public service, as a telephone or electric-light system, a streetcar or railroad line, or the like.

Front 5

Producer

Back 5

a person who creates economic value, or produces goodsand services.

Front 6

Factors of production

Back 6

an economic term that describes the inputs that are used in the productionof goods or services in order to make an economic profit.

Front 7

Natural Resources

Back 7

a naturally occurring source of wealth, as land or water.

Front 8

Labor

Back 8

productive activity, especially for the sake of economic gain.

Front 9

Human Capital

Back 9

the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community:

Front 10

Capital Goods

Back 10

machines and tools used in the production of other goods

Front 11

Capital formation

Back 11

The creation of capital. For example, capital is created when banks lend themoney they hold in savings accounts to firms that use the money topurchase machinery.

Front 12

Consumer Goods

Back 12

goods that are ready for consumption in satisfaction of human wants,as clothing or food, and are not utilized in any further production

Front 13

Economic System

Back 13

An economic system is a system of production, resource allocation, and distribution of goods and services in a society or a given geographic area.

Front 14

Market Economy

Back 14

A market economy is an economy in which decisions regarding investment, production, and distribution are based on market determined supply and demand, and prices of goods and services are determined in a free price system.

Front 15

Command Economy

Back 15

an economy in which production, investment, prices, and incomes are determined centrally by a government.

Front 16

Mixed Economy

Back 16

an economic system combining private and public enterprise.

Front 17

Privitization

Back 17

is the process of transferring an enterprise or industry from the public sector to the private sector.

Front 18

Capitalism

Back 18

an economic system in which investment in and ownership of themeans of production, distribution, and exchange of wealth is made andmaintained chiefly by private individuals or corporations, especially ascontrasted to cooperatively or state-owned means of wealth.