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24 Cards in this Set
- Front
- Back
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Economy
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A way a nation uses its Resources to provide for peoples needs and wants.
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Resources
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Known as factors of production.
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Scarcity
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Countries factors of production or resources differ.
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4 Factors of Production
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Land- natural resources
Labor- all people that work Capital- money for business operation, goods used in operation Entrepreneurs- innovative individuals |
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Broad Economy: Traditional Economy
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Use factors of product based on culture and religion.
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Broad Economy: Market Economy
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The government let's the market (people) decide how to use the factors of production.
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Broad Economy: Command Economy
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Government runs the show.
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Economies Combined
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Mixed economy, government and people involved.
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Mixed Economy: Capitalism
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Private ownership, competition, profit driven, restricts monopolies, and some government involvement.
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Mixed Economy: Socialism
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Increased government involvement, equal standard of living, healthcare and education is free or low in cost.
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Mixed Economy: Communism
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Government mostly runs everything...more individual involvement is occurring.
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Infrastructure
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Physical development of a country.
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3 Goals to a Successful Economy
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Productivity, unemployment, and stable prices.
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Economic Measurements
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Labor productivity, productive employees
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Gross Domestic Product (GDP)
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Measurement of goods and services produced in a country.
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Gross National Product (GNP)
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Total dollar value of goods and services product by a business/ nation.
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Standard of Living
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Amounts of goods and services that people have.
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Inflation Rate
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Rise in prices/ CPI= consumer price index- measures the change in price over time.
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Unemployment Rate
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Amount of unemployment or jobless.
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What Affects the Business Cycle
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Business
Consumers Government |
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Prosperity (Expansion)
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Economy flourishes
People buy more Companies make money New products |
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Recession
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Economic slowdown
Companies reduce workforce Consumers spend less Government tries to stimulate the economy |
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Depression (trough)
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Hard to find work
No spending Many businesses shut down |
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Recovery
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Economic activity
Business picks People find jobs Demand |
