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42 Cards in this Set
- Front
- Back
A person that buys goods and services to satisfy their needs and wants
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consumers
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The term for unlimited wants and limited resources.
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Scarcity
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Define: Opportunity Cost
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The more specific other option
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Name the factors of production
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Land, Labor, and Captial
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Name the term that means "hands off"
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Laissez fare
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Name the economic system that is controlled by the consumers& buisnesses
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market
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Name the economic system where the gov. makes the economic decisions
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centrally planned(command)
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What motivates and individual to produce a product in a market economy?
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profit
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name 3 characteristics of a market economy
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competition, private property, and profit
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Who owns a corportation?
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Stock holders
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Name 2 characteristics of a sole proprietorship
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1 owner, limited liability
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What is a general partner?
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Makes all descions
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Name one advantage to owning common stock
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get to vote
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name the characteristics of a corportation
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limited liability, cant vote
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define demand
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relationship between the price that is charged and the amount that will be bought at that price
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how can you illustrate the same info of demand in 2 different forms?
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Schedule, curve
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What does a demand curve or schedule illustrate?
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Law of demand
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On a demand curve, how can you show and increase in demand? Or Decrease in demand?
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INCREASE:RIGHT
DECREASE:LEFT |
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Define elastic demand
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increases significally as a price goes up or down
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Define supplu=y
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Total amount of good & services for purchase
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What is the law of supply?
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Higher price, more supply
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How does the cost of production effect supply?
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if cost goes up, supply goes down
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Name the variable costs
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raw materials,wages(labor), energy usage, distribution costs
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What is diminishing marginal return?
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At some point cant produce product any more effciently
"too many cooks in the kitchen" |
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Name the market structures
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Monopoly, Oligopy, pure competition, monopolistic.
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Name the characteristics if a pure monopoly
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ONE seller, no substiutors, difficult to enter
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Name the characteristics of an oligopy
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FEW firms, similiar products. independent firms,
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Name the characteristics of monopolistic competition
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can offer products that are close, varying in price and can have substitutes, free to enter market
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name the characteristics of a pure competion
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buyers and sellers are MANY cant control over prices try to maximize income
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prosperity
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Rising employemnt but rising prices
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Define Recession
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economic slowdown employment down, GDP down
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Define Recovery
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Follows after recession, GDP raises
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Define Depression
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GDP takes derastic drop in lowest cycle
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Why is the consumer price index important?
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Index of prices used to measure the change of cost of basic goods in companion with a fixed base period
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What is fiscal policy?
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decisions by the president and congress
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who creates fiscal policy?
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goverment
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What are the tools of the goverment can use to create fiscal policy?
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gov, spending,& descrease taxes
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what is the FICA?
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Federal Insurance Contributions Act
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define deficit
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insuffiencenty
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define national debt
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amount of money owed by the govt.
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How do banks make a profit?
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Collecting fees( Money orders, trans actions, social security, etc.)
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What are the characteristics of money?
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Durable, Portable, divisbilty, uniformity
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