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50 Cards in this Set
- Front
- Back
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In The U.S. what do we produce? |
Consumer Goods 65% Capital Goods 10% (Machinery, airplane, etc) Government Goods 18% (education, services, guns, uniforms) |
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How do we produce? |
Land- rent Labor- Wages Capital interest, machinery, tools Entrepeneurship |
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For whom do we produce? |
functional distribution wages 65% rent, interest, and profit 35% |
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advanced economies |
China, Japan, Italy, Germany, France, Canada, S. Korea, and the U.S. |
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emerging markets |
Russia, Hungary, Middle East, Central and South America. |
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What country has the biggest percent in world production? |
The U.S. with 21% |
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percent of the global oil Energy produced in the Middle East |
56% |
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federal government major expeditures |
Social Security 19.3% Medicare/ Medicaid 21% National Defence and Homeland Security 19.2% Interest National Debt 7-9% |
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Where does the government get money from? |
Taxes Personal Income taxes 45% Corporate income 12% Social Security taxes (FICA) 36% |
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State and and local Government major expeditures |
Education 34% Welfare 18% Highways |
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U.S. major trading partners |
Canada 14% Mexico 11% China 11% Japan 6% |
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Trade deficit |
China (-$280 billion) Mexico (-$57 b) Germany (-$55 b) Japan (-$47b) |
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Differences in human capital |
poor countries invest less in education than rich countries |
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Differences in physical capital |
less infrastructure equipment machinery, in poor countries |
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Quality Demand |
the amount of good that buyers are willing and able to purchase |
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Law of demand |
the quantity demanded of a good falls when the price of good rises |
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Normal good |
increase in income that leads to an increase in demand |
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inferior good |
and increase in income that decreases good demand |
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moves the demand curve |
change in income consumer taste Substitute/ complements number of buyers future expectations it has to do with you |
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moves the supply curve |
technology cost of production number of sellers future expectations it has to do with a company |
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supply goes up |
price goes down |
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Scarcity |
the condition that arises because wants exceed ability to satisfy your need |
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Scarce goods |
economic goods and are related to the price: the higher the price the more scarce and vice versa |
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Free good |
a good at zero price that you don't want |
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Examples of economics goods |
food, clothing, education, space explorations |
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Command economy |
GOVERNMENT owns means of production example: N. Korea have a few choices, and government controls everything |
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market economy |
Free enterprise, choices, self interest, property rights |
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physical capital |
car, and machines |
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Human Capital |
investment in education |
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Oppurtunity Cost |
The value of the best alternative foregone when the activity is chosen: refers to the sacrifice of single gest alternative for example going to college and wait longer to receive higher but much better income |
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Direct cost |
Tuition, books, food |
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indirect Cost |
University building, professor wages |
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Benefits |
Monetary, Knowledge, Status, Prestige |
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Sunk Cost |
Cost that is incurred no matter what; a cost that is irrelevant when you make a choice |
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comparative advantage |
A country will produce a good at the lowest opportunity cost |
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Absolute Advantage |
a country will produce the cheapest product |
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specialisation of labor |
allows worker to develop five fundamental questions: what goods will be produced? how will the goods will be produced? How will get the goods? how will the system promote the progress? how will the system accommodate the changes |
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land |
payment is the rent |
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labor |
workers get paid wages |
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capital |
machinery, equipment payment is interest |
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Entrepeneur |
businessmen, manager is paid with profit |
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entrepreneurship |
human resource that organizes labor, land and capital to produce goods an services |
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production possibilities curve |
a curve showing all alternative combinations of goods can be produced |
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Technology |
Shift production possibilities outward or inward |
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Utility |
benefit or satisfaction you get form choosing among scarce goods |
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Law of marginal utility |
extra benefit or satisfaction you get form consuming one more additional unit |
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Microeconomics |
Economics of the firm- economic decisions of a household, firm, or industry |
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Macroeconomics |
study of U.S. economy as a whole; national and international problems |
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Positive economics |
analysis of economic problem in terms of facts and data WHAT IS IN THE ECONOMIC RELATIONSHIP? |
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normative Economics |
analysis of economic problems in term of value judgements politicians use this |
