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37 Cards in this Set

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  • Back
economics
the study of how things are made, bought, sold, and used.
goods
anything that can be manufactured or grown
services
something done for others in exchange for money
resources
anything used to produce a good or a service
consumers
people who buy or use a good/service.
supply
amount of a good or a service available to consumers
demand
the amount of a good or service that consumers are willing to buy
capital
money needed to produce goods and services
division of labor
when each worker does one type of job
gross income
total amount of money made
net income
amount of money left after expenses (profit)
entrepreneur
a person who starts a new business (risk taker)
opportunity cost
what you give up when you make one choice over another (trade off)
marketing
includes advertising, shipping, storing, and selling of goods
wholesale
buying large quantities of goods at a lower price
retail
buying individual items at higher prices
traditional economy
an economy in which people supply the goods they need by methods passed down from ancestors
free market economy
privately-owned prodution, supply and demand, competition, and profit motive. (Adam Smith)
centrally-planned (command) economy
government controls production/distribution; no competition, not run for profit (Ex: comunist) (Karl Marx)
mixed economy
where individuals and government are partners; most means of production are privately-owned but government can guide and regulate economy
capitalism
people put money (capital) into businesses and hope for a profit
recession
a slowdown of economic activity
depression
a severe recession
Gross Domestic Product
total value (in dollars) of all goods and services produced in the U.S. each year
standard of living
quality of life based on amount of goods/services one can purchase plus amount of leisure time
inflation
general rise in prices of most goods and services
deficit
when the government spends more money than it makes
national debt
the total amount the government owes on money it has borrowed
Federal Reserve System (the Fed)
the central bank of the United States; twelve federal reserve districts, each with one F.R. bank; supplies banks with new money, supervises member banks, provides check-clearing services, and affects interest rates
profit
the income that remains after a business has paid off its expenses, taxes, and other costs
stockholder (shareholder)
a person who buys shares of ownership in a corporation
dividend
a share of the profit paid to the stockholders of a corporation
capital goods
the buildings and machines needed to make goods and to provide services
sole proprietorship
a business owned by one person
partnership
a business owned by two or more people
corporation
a large business that has many owners
credit union
a non-profit "bank" that offers savings accounts and provides loans to qualified members