Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
Capital
|
Things that are produced and then used in the production of other goods and services.
|
|
|
factors
|
The inputs into the process of production. Another term for resources.
|
|
|
Production
|
The process that transforms scarce resources into useful goods and services
|
|
|
Inputs
|
Anything provided by nature or previous generations that can be used directly or indirectly to satisfy human wants.
|
|
|
outputs
|
Goods and services of value to households
|
|
|
Consumer goods
|
Goods produced for present consumption.
|
|
|
investment
|
The process of using resources to produce new capital.
|
|
|
command economy
|
An economy in which a central government either directly or indirectly sets output targets, incomes, and prices.
|
|
|
laissez faire economy
|
Literally from the French: “allow [them] to do.” An economy in which individual people and firms pursue their own self-interest without any central direction or regulation.
|
|
|
market
|
The institution through which buyers and sellers interact and engage in exchange.
|
|
|
consumer sovereignty
|
The idea that consumers ultimately dictate what will be produced (or not produced) by choosing what to purchase (and what not to purchase).
|
|
|
free enterprise
|
The freedom of individuals to start and operate private businesses in search of profits.
|
