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38 Cards in this Set
- Front
- Back
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What is capital
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any man made product that is used to create other goods ans services
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What are needs
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Some like food,air or shelter that are necessary for survival
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What are wants
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an item that we desire but that is not necessary for survival
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what is an incentive
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a prize or gift that helps people to do something positive for something
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What is scarity
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limited resoureces to meet
unlimited wants |
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supply and demand
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when the cost of the activity are raised or the benefits have been reduced people do less of the activity
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out source
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external enterprise in a country other than the country where the customer is located 85% is dominated by Indian
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Budget Deficit
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excess of budget any over revenues
over revenues, usually financed by borrowing |
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budget supply(surplus)
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budgetary revenues over
expenditures |
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Factors of production
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natural human and capital resources
required to produce a good or service |
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What is Labor
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physical and mental efforts people
use to create goods |
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What is a Natural Resource
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a resource that comes from the earth
timber |
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What is Productivity
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the out put of goods and services
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production policy graph
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shows alternative ways to use an economy's resources
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production policy frontier
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line on a production possibilities graph that shows maxium possiblities
of output for specific economy |
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POVERTY
Why unequal distribution of income |
it does not take into account taxes, noncash subsides, health care or food stamps
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Causes of Poverty
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lack of education, location, racial and gender discrimination, economic shifts, shifts in family structure
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poverty by race, age, region
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whites 11%, blacks 26.5%, hispanic 27.1%
under 18 19.9%, over 65 10.5% 2 parent 5.2%, female household 31.6% |
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UNEMPLOYMENT
Frictional |
people take time to find a job
people might change jobs, might not find the right job after they finish school |
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Seasonal
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industries slow down for the season
construction, migrant workers, some students who need just summer jobs |
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Structural
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workers skills do not match the jobs available
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Cyclical
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when the recessions ends or business cycle resumes there would be upward movement of rehiring
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measuring unemployment
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percentage of the nation's
labor force that is unemployed |
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Calculating unemployment
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number of people unemployed divided by the number of people in civilian labor force divided by 100
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Full unemployment
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is level of unemployment reached when no cyclical unemployment exists
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underemployment
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working at a job in which you are over qualified
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hyperinflation
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inflation that is out of control
inflation goes as high as 100 to 500 % per month |
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effects of inflation
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purchasing power- dollar will not buy the same number of goods that it did in the years past
fixed income- does not increase even when prices do interest rates- theamount you gain in interest is lost in when inflation rises |
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INFLATION
recent trends |
in the late 1990's inflation went to low
now moving higher |
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con sumers price index
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uses prices of a group of consumer goods calleed market basket
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CPI Market Basket
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representative of goods and services
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Creeping Inflation
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steady and predictable
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Chronic Inflation
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accelerating inflation is much harder on the economy
business cannot anticipate what their cost will be |
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Grosse Domestic Product
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GDP-dollar value of all final goods and services
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what is not counted inGPD
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intermediate goods- which are used is the production of the final good
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Gross National Product
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market value of goods and services produced by Americans in one years
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Supply, Demand,and Prices
Law of Demand |
when a good's price is lower, consumers will buy it
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Substitution Effect
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when the price of one good rises like pizza, people will buy tacos which are cheaper
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