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29 Cards in this Set
- Front
- Back
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Economics |
The study of how people or countries make decisions about their scarce resources. |
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Labor |
work |
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Capital |
Things of worth; machines, building, tools, and money. |
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Natural Resource |
A raw material found on Earth, such has water, mineral, land, and forests. |
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Need |
Something necessary to survive. |
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Scarcity |
A problem in which wants are greater than what is available. |
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opportunity |
Each possible use of a resource. |
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opportunity Cost |
giving up one thing for another knowing the one chosen costs you less or has less consequences. |
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Production possibilities |
All combinations of good and services that can be produced from a fixed amount of resources in a given period of time. |
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Entrerpreneur |
When someone starts a new business or improves an old one. |
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Division of labor |
Dividing parts of an assignment for workers so each worker completes a portion of the whole job. |
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specialization |
mastering a skill or procedure to help in the completion of a product. |
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Assembly line |
a system in which a product is put together in a series of steps along a moving line in order to complete it faster. |
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Command Economy |
an economy in which government leaders give the answers to the three economic questions. |
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Communism |
A government in which the government owns all property. |
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Democracy |
A government in which citizens take part. |
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Democratic Socialism |
A government in which the people have a say in government, but in which the government owns all property. |
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Dictatorship |
a government in which the people have no rights; one person or a small group of people rule the country by force and make all the laws |
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Rural |
means away from the city. |
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Socialism |
The belief that government rather than individuals should own a country's major industries. |
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Traditional economy |
An economy that does things as they were done in the past; custom and tradition determine answer to the three economic questions. |
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Welfare |
Aid (money or goods) for those in need. |
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Capitalism |
A system in which individuals and private businesses own and control production (also called market economy) |
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Incentive |
Something that makes a person take an action. |
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Invisible hand |
Adam Smith's idea that competition acts like and invisible hand; it pushes people to do what is best for themselves. |
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Market Economy |
A system in which individuals and private businesses own and control production (also called capitalism) |
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Mixed Economy |
An economy in which there is a blend of economic systems; individuals and the government share in the decision-making process |
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Karl Marx |
Communism is based on the writing of: |
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Adam Smith |
He wrote one of the most important books on economics called the Wealth of Nations. |
