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30 Cards in this Set

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Exchanging one thing for the use of another
Trade-off
The value of the next alternative that had to be given up to do the action that was chosen
opportunity cost
Economist use ________ to show the maximun combinations of goods and services.
Production Possibilities Curve
What is a good example for explaining production poss. curve.
the trade-off between military defense and civilian goods, or guns and butter.
BRANCH OF ECONOMIC THEORY THAT DEALS WITH BEHAVOIR AND DECISION MAKING BY SMALL UNITS SUCH AS INDIVIDUALS AND FIRMS.
MICROECONOMICS
BRANCH OF ECONOMICS THEORY DEALING WITH THE ECONOMY AS A WHOLE AND DECISION MAKING BY LARGE UNITS SUCH AS GOV.
MACROECONOMICS
MEANS ALL THE ACTIVITY IN A NATION THAT TOGETHER AFFECTS THE PRODUCTION, DISTRIBUTION AND USE OF GOODS AND SERVICES.
ECONOMY
THEORIES THAT ECONOMISTS USE IN THEIR WORK ARE CALLED ___________ WHICH SIMPLIFIED REPRESENTATIONS OF THE REAL WORLD.
ECONOMIC MODELS
AN EDUCATED GUESS??
HYPOTHESIS
A WAY OF DETERMINING HOW TO USE RESOURCES TO SATISFY PEOPLE'S WANTS AND NEEDS.
ECONOMIC SYSTEM
NAME FOUR ECONOMY
TRADITIONAL, MARKET, COMMAND, AND MIXED.
THE VOLUNTARY EXCHANGE OF GOODS AND SERVICES BETWEEN BUYERS AND SELLERS.
MARKET
ECONOMIC SYSTEM IN WHICH THE GOV. MINIMIZE ITS INTERFERENCE WITH THE ECONOMY.
LAISSEZ-FAIRE
AMERICA IS CONSIDER THIS, TERM MEANING THAT INDIVIDUALS ARE FREE TO OWN AND CONTROL THE FACTORS OF PRODUCTION
FREE ENTERPRISE SYSTEM
ADAM SMITH WROTE WHAT BOOK?
NATURE AND CAUSES OF THE WEALTH OF NATIONS
WHAT DID ADAM SMITH BELIEVE IN?
HE BELIEVE THAT INDIVIDUALS, SEEKING PROFIT, END UP BENEFITING SOCIETY AS A WHOLE;SELF - INTEREST
WHAT ARE THE SIX NATIONAL GOALS OF AMERICA?
FREEDOM, EFFICIENCY, EQUITY, SECURITY, STABILITY,AND GROWTH.
THE MATERIAL WELL-BEING OF AN INDIVIDUAL, GROUP, OR NATION
STANDARD OF LIVING
PRODUCING INCREASING AMOUNTS OF GOODS AND SERVICES OVER THE LONG TERM.
ECONOMIC GROWTH
WHAT ARE THE THREE BASIC QUESTION OF ECONOMIC QUESTION?
1. WHAT GOOD AND SERVICES SHOULD BE PRODUCED?
2. HOW SHOULD THEY BE PRODUCED?
3. WHO SHOULD SHARE IN WHAT IS PRODUCED?
WHAT IS TRADITIONAL ECONOMY?
BASED ON CUSTOMS AND BELIEF HANDED DOWN FROM GENERATION TO GENERATION.

*ALWAYS DONE IT THAT WAY
WHAT IS COMMAND ECONOMY?
GOV. LEADERS CONTROL THE FACTORS OF PROCDUCTION AND THEREFORE, MAKE ALL DECISIONS ABOUT THEIR USE.
*TELL YOU WHAT TO DO
WHAT IS MARKET ECONOMY?
INDIVIDUAL LOOKING OUT FOR THEIR OWN AND THEIR FAMILIES' BEST INTEREST MAKE THE ECONOMIC DECISIONS.
*CHOICES
WHAT IS THE SIX MAJOR CHARACTERISTICS
1. LITTLE OR NO GOVERNMENT
2. FREEDOM OF ENTRPRISE
3. FREEDOM OF CHOICE
4. PRIVATE PROPERTY
5. PROFIT INCENTIVE
6. COMPETITION
HAS PRIVATE INDIVIDUALS OWNING THE FACT. OF PROD. BUT USING THEM WITHIN THE LIMITS OF THE LAW
CAPITALISM
THE DESIRE THAT MOTIVATE ENTREPRENEUR TO ESTABLISH NEW BUSINESSES, EXPAND EXISTING ONES, AND CHANGE THE KINDS OF GOODS AND SERVICES PRODUCED.
PROFIT INCENTIVE
ONE OF THE MOST IMPORTANT CHARACTERISTICS OF CAPITALISM IS THE EXISTENCE OF _________________.
PRIVATE PROPERTY
THE GOAL OF ________________ _________ IS TO ALLOW EACH MEMBER OF SOCIETY TO MAKE CHOICES
ECONOMIC FREEDOM
WISE USE OF AVAILABLE RESOURCES SO THAT COSTS DO NOT EXCEED BENEFITS.
ECONOMIC EFFICIENCY
THE ATTEMPT TO BALANCE AN ECONOMIC POLICY SO THAT EVERYONE BENEFITS FAIRLY.
ECONOMIC EQUITY