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18 Cards in this Set
- Front
- Back
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Scarcity
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Limited quantities of resources to meet unlimited wants |
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safety net
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government programs that protect people experiencing unfavorable economic conditions |
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standard of living
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level of economic prosperity |
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Laissez faire
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idea that government should play as small a role as possible in economic affairs |
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free enterprise system
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An economic system in which individuals depend on supply and demand and the profit margin to determine what to produce, how to produce, how much to produce, and for whom to produce. The quest for improvement financially and materially motivates consumers and producers. |
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Eminent domain
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Allows the govt to take property for public use but also requires the govt to provide just compensation for that property
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Gross domestic product
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The sum total of the value of all the goods and services produced in a nation
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Public sector
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the part of the economy that involves the transactions of the government
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private sector
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the part of the economy that involves the transactions of individuals and businesses
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Law of supply
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Tendency of suppliers to offer more of a good at a higher price
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marginal cost
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Extra cost of producing one additional unit of production.
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marginal revenue
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the change in total revenue from an additional unit sold
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economies of scale
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Factors that cause a producer's average cost per unit to fall as output rises.
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collusion
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collaboration; complicity; conspiracy
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derregulation
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reduction/removal of gov. regulations on business to promote economic efficiency and free enterprise
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Sole Proprietorship
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A business owned by one person
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liquidity
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Availability of resources to meet short-term cash requirements.
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mutual fund
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a business that accepts deposits from many people to invest in various ways
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