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14 Cards in this Set
- Front
- Back
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Economics
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Economists - study how society meets unlimited material needs with its limited resources.
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Communism
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Doesn't permit private ownership of property and the means of production at all.
The government is described as the community and owns the property and distributes the society's merchandise in accordance with the "common good". |
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Socialism
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The most important industries and services are public owned and cooperatively owned.
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Capitalism
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Is an economic system based on the private ownership of the resources of production. Investment decisions are made by the individual or corporation rather than by the government.
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Inflationary Spiral
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A circular pattern in which wage increases feed on price increases.
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Inflationary Psychology
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Sets in as consumers rush to make major purchases because they believe that prices will only increase.
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Deflation
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When too little money and credit are available and more goods are available than necessary to satisfy demand, the dollar gains value and the prices of goods decrease.
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What are some of the more commonly used economic statistics?
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Stock market trading
unemployment percentages number of housing starts gross domestic product |
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GNP
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Gross National Product measures international activities and is more of a global measure of economic enterprises.
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3 Vital factors of production
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Natural Resources
Capital Labor |
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Mixed Economy
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Is used to describe the u.s. economy since some government regulation of private enterprise exists.
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Discount Rate
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Is the rate of interest the federal reserve charges member banks to borrow money.
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Inflation
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When too much money and credit are available and too few goods are available to satisfy demand. The dollar loses its value and the prices of goods increase.
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CPI
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Consumer price index- is the measure of change in prices of a group of goods or service that an average consumer would purchase.
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