Economics-Pintar (Chapter 1, Section 1& 2)

Front 1

Economics

Back 1

*study of how individuals, families, businesses and societies use limited resources to fullfill their unlimited wants.

Front 2

wants

Back 2

*don't have to have to survive

Front 3

needs

Back 3

*must have in order to survive

Front 4

scarcity

Back 4

*not enough resources available for everyones limited wants, must make choices

Front 5

4 factors of Production

Back 5

1. labor
2. land
3. capital
4. entrepeneurs

Front 6

Distribution

Back 6

*how much of each factor of production you have determines wealth

Front 7

Trade-off

Back 7

*scarcrificing on good or service to produce or purchase another.

Front 8

microeconomics

Back 8

*behavior and decision making of individuals and small firms

Front 9

macroeconomics

Back 9

*economy as a whole, the USA major industries

Front 10

Economic systems

Back 10

*the way a nation determines how to use its resources to satisfy it peoples needs and wants

Front 11

command economy

Back 11

*system in which the government controls the factors of production

Front 12

market economy

Back 12

*system in which the individuals factors of production and make economic decisions through free interaction. AKA capital

Front 13

market

Back 13

*free exchange of goods and services between buyers and sellers

Front 14

mixed economy

Back 14

*combination of market economy and command.
*most countries have this.

Front 15

Adam Smith

Back 15

*wrote the Wealth of Nations
*invisible hand, people do whats in their best interest.

Front 16

Laissez-Faire System

Back 16

*Economic system with minimal interference
*relates to capitalism

Front 17

regulations

Back 17

*has consistently increased. FDA, banking, banking, social programs, education, recreation.

Front 18

Free enterprise system

Back 18

*economic system in which the individuals own the factors of production and decide how to use them.

Front 19

Freedom of choice

Back 19

*buyers make the decisions about what should be produced.

Front 20

How does the government protect buyers?

Back 20

*safety standards

Front 21

Profit

Back 21

*amount earned after a business substracts all of its costs from its revenues.

Front 22

compeition

Back 22

*rivalries among businesses which force them to offer competitive prices and better quality products.

Front 23

Private property

Back 23

*property owned by individuals and private businesses rather than by government.

Front 24

Socialism

Back 24

*government own the major factors of production and attempts to manage output and distribution of goods.
*examples: North Korea, Cuba

Front 25

Karl Marx

Back 25

*wrote communist manifesto
*father of modern socialism

Front 26

Communism

Back 26

*Idealized system with no need for a government.

Front 27

Supporters of Capitalism

Back 27

*personal freedom
*high rate of growth in unregulated economics

Front 28

Critics of Capitalism

Back 28

*uneven distribution of wealth
*unethical in many ways.

Front 29

Production Possibilities Curve

Back 29

*PPC
*graph showing the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period

Front 30

Opportunity cost

Back 30

*value of the next best alternative that was given for what was chosen.

Front 31

Labor

Back 31

*work people do

Front 32

Land

Back 32

*natural resources

Front 33

Capital

Back 33

*manufactured goods

Front 34

what does a picture of a building represents?

Back 34

*capital