Econ Chapters 1-3

Front 1

Wants & Needs

Back 1

umlimted wants but limted resources

Front 2

Scarcity

Back 2

unlimited wants but wants are limited

Front 3

Goods & Services

Back 3

are tangible things that can be consumed, such as clothes and food. Services are actions people perform.

Front 4

Consumer

Back 4

.A person who purchases goods and services for personal use

Front 5

Producer

Back 5

A person, company, or country that makes, grows, or supplies goods or commodities for sale.

Front 6

Three economic questions

Back 6

What will be produced? 2. By whom will it be produced? 3. For whom will it be produced?

Front 7

Resources/factors of production

Back 7

land labor capital and enterprise

Front 8

What does “No Free Lunch” mean

Back 8

everything costs money

Front 9

What does “No Free Lunch” mean

Back 9

everything costs money

Front 10

Trade-offs

Back 10

negotiations where the positions of the opposing parties can be quantified

Front 11

Opportunity cost

Back 11

are fundamental costs in economics, and are used in computing cost benefit analysis of a project.

Front 12

Economic models

Back 12

shows two different products being used or made.

Front 13

Production possibilities curve

Back 13

max amount of two goods that can be produced using limited

Front 14

4 assumptions of PPC

Back 14

goods, full employment, fixed technology and fixed resources.

Front 15

Points on, inside, & beyond PPC

Back 15

unemployment and econ growth

Front 16

Law of increasing opportunity costs

Back 16

the redirection of materials used in the manufacture of refrigerators to the manufacture of cars creates inefficiencies in production.

Front 17

Economic growth with PPC

Back 17

Increase in a country's productive capacity, as measured by comparing gross national product (GNP) in a year with the GNP in the previous year.

Front 18

Microeconomics

Back 18

study of how individual households and make decisions.

Front 19

Macroeconomics-

Back 19

study of national and international issues.

Front 20

Positive statements

Back 20

"what is" and "what will happen" if a course of action is taken or not taken.

Front 21

Normative statements

Back 21

"what should or ought to be."

Front 22

Economic system

Back 22

which a state or nation allocates its resources and apportions goods and services in the national community.

Front 23

Traditional system-

Back 23

where traditions, customs, and beliefs shape the goods and products the society creates

Front 24

Command system-

Back 24

manufactures products and solutions to suit the many needs of the education and corporate markets

Front 25

Market economy-

Back 25

which decisions regarding resource allocation, production, and consumption, and price levels and competition

Front 26

Adam Smith-

Back 26

Considered to be the father of economic theory and author

Front 27

Laissez faire-

Back 27

this doctrine claims that an economic system should be free from government

Front 28

Capitalism-

Back 28

private ownership of the factors of production (capital, land, and labor) employed in generation of profits

Front 29

Voluntary exchange-

Back 29

The free exchange of goods and services between buyers and seller in some sort of marketplace.

Front 30

Competition -

Back 30

every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share

Front 31

Circular flow model-

Back 31

A simple economic model illustrating the flow of goods and services though the economy

Front 32

Product market-

Back 32

which a final good or service is bought and sold.

Front 33

Factor market-

Back 33

Any external agent that affects the demand for or the price of a good or service

Front 34

Mixed economic system-

Back 34

the private enterprise and a degree of state monopoly (usually in public services, defense, infrastructure, and basic industries) coexist

Front 35

Free enterprise system-

Back 35

the market forces of demand and supply, un-restrained by undue government interference

Front 36

Open opportunity-

Back 36

An application of forecasting techniques to the market factors that may influence the demand for a product identified as a market opportunity

Front 37

Legal equality-

Back 37

Powers and limitations that arise from legislation and interpretation of laws

Front 38

Profit motive-

Back 38

generating a surplus of revenue over all costs the reason most people start and stay in a business

Front 39

Profit-

Back 39

The surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid