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45 Cards in this Set
- Front
- Back
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4 factors of production
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- natural resources (land)- things provided by nature that go into creation of goods and services
- human resources (labor)- physical or mental effort people put into creation of goods and services - capital- created by people to produce other goods and services - entrepreneurship- managerial organizational skills needed by most firms to produce goods and services |
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scarcity
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Not enough to go around
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opportunity cost
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Best alternative one gives up when making a choice
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voluntary exchange
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Both benefit from exchange
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market economy
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Private property, profit motive
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mixed economy
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Blend of market forces and government participation
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consumer
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People who use goods and services to satisfy their wants
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supply
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An array of quantities that would be produced and offered for sale at each and every possible market
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demand
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A consumer's willingness to purchase representing desire and ability to satisfy a want or need
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interest
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Payment for using someone else's money
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pure price competition
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Market for uniform to products, many buyers and sellers, none large enough to effect price and full knowledge of market conditions
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oligopoly
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Markets dominated by few large firms
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monopoly
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Market with one seller
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Gross domestic product
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Total value of all goods and services produced by economy in one year
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fixed cost
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Cost that remain about the same regardless of business by firms
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franchise
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License to operate an individually own business as a part of large chain
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corporation
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Business organization created under a government charter, ownership through stock
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sole proprietorship
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Business owned by one person
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partnership
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Business owned by two or more people
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the federal Reserve
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Created by Congress in 1913
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u.s. mint
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Where money is made
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imports
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products brought to our country
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exports
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Products sold abroad
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quotas
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Restrictions on number of goods that can enter country from abroad
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tariffs
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Tax on imports
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liquidity
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Measure of the ease in which you can convert savings into cash
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dividends
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Portion of a corporation's profits that are distributed to stockholders
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Nationalization
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Government takeover of what had been a privately owned business
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business cycle
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Periodic ups and downs in economy
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diminishing marginal utilities
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The point reached when the last item consumed will be less satisfying than one before
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microeconomics
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Study of individual consumers
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laissez-faire
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Economy works best if left to function on its own without government regulation
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elasticity
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How much change in price affects quantity demanded
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macroeconomics
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Study of economy as a whole
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Adam Smith
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Billy the nation's wealth was dependent upon production not just AG. Laissez-faire, wrote Wealth of Nations
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entrepreneurship
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When people own and operate their own business in hope of earning a profit
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APR
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Cost of credit calculated as a percent on an annual basis
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inflation
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Extended period of rising prices
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free trade
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Policy where tariffs and other barriers to trade between nations are removed
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deflation
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Extended period of falling prices
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purchasing power
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Quantity and quality of goods and services we can buy with our money
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stockholders
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Corporate owners, limited liability, easy transfer, unlimited life
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antitrust laws
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Legislation designed to safeguard competition
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Sherman Antitrust Act
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1890, made it illegal to create monopolies / restrain trade
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division of labor
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Practice of breaking down large complex task into a series of small ones that each worker can become an expert in his task
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