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78 Cards in this Set
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a tool or resource used to produce or distribute goods |
capital good |
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tax that government places on imported goods |
tariff |
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group that was the first ot try to create a science out of economics |
physiocrats |
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amount of satisfaction that results from a one unit increase of a good |
marginal utility |
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group of firms that produce similar products or provide similar services |
industry |
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study of specific components with a major economy |
microeconomics |
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consumers send these to producers to let them know what goods are wanted at certain prices |
market signals |
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a material item for which people will pay |
good |
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individual who supplies products |
producer |
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relationship between a good's price and the amount that producers are willing to make available |
supply |
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good in which price affects the demand that consumers exhibit |
elastic good |
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prices are not affected by the demand of consumers on this type of good |
inelastic good |
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when there is only one firm in an industry because it can fill the demand for a good more efficiently than if there were multiple firms |
natural monopoly |
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type of economic system that tries to build up a state's treasury |
mercantilism |
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type of economic system that tries to build up state's treasury |
mercantilism |
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type of economic system governed primarily by the private sector |
free market economy |
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type of economic system governed by the public |
command economy |
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it provides for standardized products |
perfect competition |
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provides products for which there are no close substitutes |
monopoly |
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provides for differentiated products |
monopolistic competition |
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formed by a group of businesses to eliminate competition |
trust |
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forces buyers into buyers into buying products they do not want |
tying contract |
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allows producers to sell goods at different prices to different buyers |
price discrimination |
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it is an illegal, underground system developed to avoid governmental regulation |
black market |
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setting a limit on what a consumer can be charged |
ceiling |
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example of a price ceiling |
rent control |
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point at which quantity supplied and quantity demanded are equal |
equilibrium |
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example of a legal monopoly
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patent for an item |
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one of the first and most important antitrust laws |
sherman act of 1890 |
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governmental agency abbreviated as the FTC, investigates trade practices |
federal trade commission |
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economic system in which the production of goods is based on customs and habits |
traditional economy |
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one of the safest ways to invest in a corporation |
bonds |
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the part of money supply that includes transaction accounts, noncheckable savings, deposits and time deposits worth less than $100,000 |
M2 |
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a system for the production, distribution, and consumption of goods |
economy |
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the relationship between a good's price and the amount that people are willing to buy |
demand |
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results in an economic system when there is too much money in circulation, prices rise |
inflation |
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nongovernmental agency that controls the money supply of the US |
federal reserve system |
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mechanism that allows people to exchange goods |
market |
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separates the work to be performed into individualized tasks |
division of labor |
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guided by the choices made by the private sector |
free enterprise economy |
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a committment of resources to a purpose expected to provide future gain |
investment |
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principle that states that as one's supply of a good increases, the satisfaction derived from each additional unit tends to decrease |
diminishing marginal utility |
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anything that is generally accepted as a means of payment |
money |
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a system that allows banks to create money since they are not obligated to hold all their deposits in reserve |
fractional reserve banking |
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unbacked money that is declared valid by a government |
flat money |
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good that has a life expectancy of two or more years |
durable good |
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good that has a life expectancy of less than 2 years |
non durable good |
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economic system based upon public ownership and governmental control of the production and distribution of nearly all national resources |
communism |
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used for the value of the best alternative that is foregone when a different alternative is taken |
opportunity cost |
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American system of mandatory social insurance |
social security |
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New Deal |
Franklin D. Roosevelt |
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"Bad money drives out good." |
Sir Thomas Gresham |
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gunpowder entrepeneur |
E. I. DuPont |
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invisible hand |
Adam Smith |
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monetarism |
Milton Friedman |
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Physiocracy |
Pierre Samuel du Pont |
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Diamond-Water Paradox |
Karl Menger |
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mass production |
Henry Ford |
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Das Kapital |
Karl Marx |
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the opportunity cost for an accountant whose business had an expense of 90,000 and revenues totaling 115,000 been if he could have a salary of 80,000 working for someone else |
add 90,000 and 80,000 then subtract 115,000 55,000 |
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why are countries with market economies more prosperous that ones that dont |
competition |
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type of market's entry is completely blocked |
monopolistic market |
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type of market is a retail automobile industry in a large city |
monopolistic competition |
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book by Adam Smith write about economics |
The Wealth of Nations |
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four factors of production |
natural resources, labor, capital, entrepreneurship |
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two characteristics of a good that shows its value |
utility and scarcity |
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two contestants in a market economy |
producers and consumers |
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three basic components of free enterprise |
competition, limited government, and private property |
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happens to the equilibrium price when the supply of a good increases |
decreases |
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type of monopoly is a copyright on a novel an example |
legal monopoly |
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checking account a popular form |
transaction account |
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type of investment guarantees a certain interest rate and has a specified maturity date |
certificates of deposit |
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one of the safest ways to invest in a corporation |
purchase of bond |
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type of good is an oven used to bake bread in a bakery |
capital or investment |
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three key elements that determine how much an investmet grows |
time, rate of return, and amount invested |
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usually happens when a government fixes a good's price above its equilibrium price |
a surplus of that good |
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primary responsibilities of a government when it comes to economics |
reward good and punish evil |
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the name of the French group whose members were some of the earliest influential advocates of laissez-faire economics |
Physiocrats |
