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;
73 Cards in this Set
- Front
- Back
|
Wants
|
desires that can be satisfied by consuming a good or service
|
|
|
Needs
|
Things that are necessary for survival
|
|
|
Scarcity
|
When there are not enough resources to satisfy human wants
|
|
|
Economics
|
The study of how individuals and societies satisfy their unlimited wants with limited resources
|
|
|
Goods
|
Objects, such as food, clothing, and furniture that can be bought
|
|
|
Services
|
Work that one person does for another
|
|
|
Consumer
|
A person who buys or uses goods or services
|
|
|
Producer
|
A maker of goods or a provider of services
|
|
|
Factors of production
|
resources needed to produce goods and services
|
|
|
Land
|
all natural resources used to produce goods and services
|
|
|
Labor
|
All of the human effort used to produce goods and services
|
|
|
Capital
|
All of the resources made and used by people to produce goods and services
|
|
|
Entrepreneurship
|
The vision, skills, and risk-taking needed to create and run businesses
|
|
|
Incentives
|
methods used to encourage people to take certain actions
|
|
|
Utility
|
The benefit or satisfaction received from using a good or service
|
|
|
Economize
|
make decisions according to the best combination of costs and benefits
|
|
|
Trade-off
|
the alternative people give up when they make choices
|
|
|
Opportunity cost
|
the value of something that is given up to get something else that is wanted
|
|
|
Cost-Benefit analysis
|
is an approach that weighs the benefits of an action against its costs
|
|
|
Marginal Cost
|
The additional cost of using one more unit of a product
|
|
|
Marginal Benefit
|
The additional satisfaction from using one more unit of a product
|
|
|
Economic model
|
A simplified representation of economic forces
|
|
|
Production possibilities curve (ppc)
|
a graph used by economists to show the impact of scarcity on an economy
|
|
|
efficiency
|
involves producing the maximum amount of goods and services possible
|
|
|
Underutilization
|
Producing fewer goods and services than possible
|
|
|
The law of increasing opportunity costs
|
states that as production switches from one product to another, increasing amounts of resources are needed to increase the production of the second product
|
|
|
Statistics
|
information in numerical form
|
|
|
Microeconomics
|
the study of individuals, families, businesses in an economy
|
|
|
Macroeconomics
|
the study of the economy as a whole and is concerned with large-scale economic activity
|
|
|
Positive economics
|
Studies economic behavior as it i s
|
|
|
Normative economics
|
Involves judgements of what economic behavior ought to be
|
|
|
Economic system
|
the way society uses resources to satisfy its peoples wants
|
|
|
Traditional economy
|
An econmic system in which people produce and distribute goods according to customs handed down from generation to generationso
|
|
|
Command economy
|
An economic system in which the government makes all economic decisions
|
|
|
Market economy
|
An economic system in which individual choice and voluntary exchange direct economic decisions
|
|
|
Centrally planned economy
|
A system in which central government officials make all economic decisions
|
|
|
Socialism
|
an economic system in which the government owns some or all of the factors of production
|
|
|
Communism
|
An economic system in which the government owns all the factors of production and there is little or no political freedom
|
|
|
Authoritarian
|
Requires absolute obedience to those in power
|
|
|
Private property rights
|
the rights of individual and groups to own businesses and resources
|
|
|
market
|
any place where people buy and sell goods and services
|
|
|
Laissez faire
|
principle that the government should not interfere in the marketplace
|
|
|
Capitalism
|
an economic system that is based on private ownership of the factors of production
|
|
|
voluntary exchange
|
a trade in which both traders believe that what they are getting is worth more than what they are giving up
|
|
|
profit
|
financial gain that a seller makes from a business transaction
|
|
|
competition
|
all the actions sellers, acting independently, do to get buyers to purchase their products
|
|
|
Consumer sovereignty
|
The idea that consumers have the ultimate control over what is produced because they are free to buy what they want and to reject what they don't want
|
|
|
Specialization
|
A situation in which people concentrate their efforts in the activities that they do best
|
|
|
The circular flow model
|
a tool that economists use to understand how market economies operate
|
|
|
product market
|
the market where goods and services are bought and sold
|
|
|
factor market
|
the market for the factors of production- land, labor, capital, and entrepreneurship
|
|
|
Mixed economy
|
an economic system that has elements of traditional, command, and market economies
|
|
|
nationalize
|
to change from private ownership to government or public ownership
|
|
|
privatize
|
to change from private ownership to government or public ownership
|
|
|
global economy
|
refers to all the economic interactions that cross international boundaries
|
|
|
free enterprise system
|
another name for capitalism, an economic system based on private ownership of production resources
|
|
|
Open opportunity
|
the ability of everyone to take part in the market by free choice
|
|
|
legal equality
|
a situation in which everyone has the same economic rights under the law
|
|
|
free contract
|
a situation in which people decide which legal agreements to enter into
|
|
|
profit motive
|
the force that encourages people and organizations to improve their material well being from economic activities
|
|
|
profit
|
the money left over after the costs of producing a good or service have been subtracted from the revenue gained by selling that good or service
|
|
|
modified free enterprise economy
|
a free enterprise economic system with some government involvment
|
|
|
market failure
|
when people who are not part of a marketplace interaction benefit from it or pay part of its costs
|
|
|
public goods
|
products provided by federal, state, and local governments and consumed by the public as a group
|
|
|
free rider
|
a person who avoids paying for a good or service but who benefits from that good or service anyway
|
|
|
infrastructure
|
all the goods and services that are necessary for the functioning of society
|
|
|
externality
|
a side effect of a product that affects someone other than the producer or the buyer
|
|
|
negative externality
|
an externality that imposes costs on people who were not involved in the original economic activity
|
|
|
positive externality
|
externality that crates benefits for people who were not involved in the original economic activity
|
|
|
subsidy
|
a government payment that helps cover the cost of an economic activity that has the potential to benefit the public as a whole
|
|
|
safety net
|
government programs designed to protect people from economic harship
|
|
|
transfer payments
|
transfers of income from one person or group to another even though the receiver does not provide anything in return
|
|
|
public transfer payment
|
a transfer payment in which the government transfers income from taxpayers to recipients who do not provide anything in return
|
