Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
40 Cards in this Set
- Front
- Back
|
Name the four factors of production. |
Land Labor Capital Entrepreneurship |
|
|
Explain the four factors of production |
Land: gifts of nature that make production possible.
Labor: human effort directly toward producing goods & services
Capital: previous manufactured goods used to make other goods & services
Entrepreneurship: individuals who start new business, introduce new products, and improve management techniques. |
|
|
What are the three basic economic questions? |
What to produce? How to produce? For whom to produce? |
|
|
What is trade-off? |
Trade off: the alternate you face if you decide to do one thing rather than another |
|
|
What are opportunity costs? |
Opportunity cost: the cost of the next best alternative use of time and money when choosing to do one thing rather than another. |
|
|
Name the three economic systems |
Command economy Market economy Traditional economy |
|
|
Explain the three economic systems |
Command economy: major economic decisions are made by central government
Market economy: individuals own the factors of production and make economic choices through free interaction
Traditional economy: the decisions of what, how, and for whom to produce, are based on custom and habit. |
|
|
Who is Karl Marx? |
Karl Marx was an economic historian and a social scientist. He wrote the communist manifesto. He did not think dictatorship would succeed. |
|
|
How are economic decisions made in a market economy? |
Free interaction |
|
|
What are the 3 functions of money? |
Medium of exchange.
Measure of value.
Store of value. |
|
|
What is the federal budget? |
Annual plan outlining proposed expenditures and anticipated revenues |
|
|
What are 5 other forms of federal taxation? |
Income tax Payroll tax Unemployment tax Sales tax Foreign tax |
|
|
What are the four major labor categories? |
Unskilled labor Semiskilled labor Skilled labor Professional labor |
|
|
Define macro-economics |
Macro-economics: the part of economic theory dealing with the economy as a whole and division making by large units such as governments and unions |
|
|
Define micro-economics |
Micro-economics: branch of economic theory that deals with behavior and decision making by small units such as individuals and firms |
|
|
What are renewable resources? |
Renewable resources: natural resources that can be replenished for future use |
|
|
What are three reasons why members of one labor category find it difficult to qualify for occupations open to a higher labor group? |
Cost Opportunity Innitive |
|
|
what are the three basic economic impact of taxes? |
Allocation Consumer behavior Productivity & growth |
|
|
What kind of stocks/bonds should you buy when you are a first time investor? |
Index funds |
|
|
What does the Law of Demand state? |
The Law of Demand states that quantity demanded of a good or service varies inversely with its price |
|
|
What's the difference between Change in Supply & Change in Quantity Supplied? |
Change in supply: different amounts offered for sale at each & every possible price in the market; shift of the supply curve.
Change in quantity supplied: moves along supply curve |
|
|
What is a price ceiling? |
Price ceiling: Max legal price that can be charged for a product |
|
|
What is a price floor? |
Price floor: lowest legal price that can be charged for a product |
|
|
What are two advantages of a gold standard? |
•Security for your money •prevents government from printing too much paper currency |
|
|
What are four types of depository institutes? |
•savings institutions •commercial banks •credit unions •mutual savings banks |
|
|
What are 3 economic systems appear on the Spectrum of Economic Systems? |
Capitalism Socialism Communism |
|
|
List 3 advantages of capitalism |
•efficiency •freedom •highly decentralized |
|
|
What are two major restrictions of international trade? |
•tariffs •Quotas |
|
|
What are the three general types of taxes in the United States today? |
Income tax Sales tax Property tax |
|
|
What does FICA stand for & what does it do? |
FICA (Federal Insurance Contributions Act): tax levied on both employers & employees to pay for Social Security & healthcare |
|
|
What are the four major market structures? |
Monopolistic competition Monopoly Oligopoly Perfect competition |
|
|
What is the census? |
Census: complete count of population, including place of residence |
|
|
What are three degrees of inflation, from least to most severe? |
•creeping inflation •galloping inflation •hyperinflation |
|
|
List 4 alternative fuels |
Ethanol, natural gas, electricity, and hydrogen |
|
|
List three significant changes in the population (of the U.S.) since colonial times. |
•Treaty of Guadeloupe Hidalgo •Gold Rush •Dust Bowl |
|
|
What are the five conditions that exist in a perfect competition market structure? |
•large number of buyers & sellers •buyers & sellers deal in identical products •each buyer & seller acts independently •buyers & sellers are well informed about products & prices •buyers & sellers are free to enter into, conduct, or get out of business. |
|
|
What was the purpose of the Federal Trade Commission Act? |
The purpose was to regulate unfair methods of competition in interstate commerce |
|
|
Why were financial institutions closely regulated by the government from 1933 through the 1970s? |
They were because the government was trying to protect you from fake banks and from banks crashing. |
|
|
Who owns the Federal Reserve System? |
Privately owned banks own the FRS. |
|
|
Define GDP. |
GDP (Gross Domestic Product): the dollar value of all final goods & services, and structures produced within a country's borders in a 12 month period. |
