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44 Cards in this Set
- Front
- Back
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What is Economics?
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the study of how things are made, bought, sold, and used.
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Goods and Services satisfy people's what?
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people's needs (required for survival)
peoples wants (things we like to have) |
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What are goods?
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products we buy. (food, clothing, cars, jewelry)
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What are services?
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people who provide services in exchange for money( waiter, doctors, entertainers)
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Resources?
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used in making goods and services( like natural resources-wood, water), human resources, tools)
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Scarcity?
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not having enough resources to produce all the goods we would like to have
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consumers?
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people who buy and use products
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supply?
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the amount of each good and service made available to consumers.
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demand?
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the amount of goods and service that consumers are willing to buy.
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What is demand influenced by?
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supply, price, and how many people want it.
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what will happen to the price when supply is low and demand is high?
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the price will go up
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What will happen to the price when supply is high and demand is low?
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the price will go down
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What are the 4 elements of Production?
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capital (money)
land & natural resources labor management |
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Financial Capital?
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money needed to produce goods and services.
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Capital Goods?
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tools, builing, machines used to make goods and provide services.
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What are natural resources?
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crops, materials, and energy needed to create a certain project or maintain business.
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Labor?
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workers
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What is a Division of Workers?
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when each person does one type of job or smaller task... like assembly line.
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What do managers do?
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plan and supervise the production of goods and services. Make important decisions about what to product and how much.
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What is marketing and what does it involve?
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Marketing- getting goods to consumers. INVOLVES:
*Advertising *Distribution *Storing *Selling |
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What is productivity?
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Productivity- a measure of the amount of ouput(goods). created using a certain amound of inputs(resources)
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Demand Curve?
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shows the amount of product that would be bought at all possible prices in the market.
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Demand Schedule?
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table listing the quanities of a product that someone is willing to buy over a range of prices
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Law of Demand?
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when the price is higher the people are willing to buy less of the product. When the price is lower, the people are willing to buy more.(quanity demanded and price move in opposite directions)
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According to the Law of Demand, how do quanitiy and price move?
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quanity demanded and the price move in opposite directions.
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Supply?
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quanity of a good
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Supply Schedule?
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table showing supply relationship of price to quanity. Can also be shown in a supply curve. (from producer perspective)
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Law of Supply?
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as the price falls, the quanity supplied also fallls. Opposite of Law of Demand. The higher the price, the more willing the producer will be to make more of the good.
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What is a Command Economy?
(Communisim) |
government makes all economic decisions like what ot produce, how much to make, and who gets the products. Government controls means of production- factories, farms, etc.
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What are some Advantages and Disadvantages of a Command Economy?
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Disadvantages= no competion and indivisual freedom.
Advantages= low prices |
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Who was Karl Max?
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advocate of Communism- believed the wealth of nations was its labor, which was only recieving only a small part of the actual wealth. Said capitalist were robbing workers of their wealth.
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What is a Market Economy?
(Capitalism) |
consumers make all economic decisions based on supply and demand.- economic system in which private owners and corporations control the means of production, distribution and exchange of wealth.
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Free Enterprise?
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no government interference
(b/c) of competion people choose the best product for the lowest price. |
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Who was Adam Smith?
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first major advocate of Capitalist economies. Made The Natural Laws of Economics. said these laws were born into the system. argued b/c these laws govern economies gov. should not interfere.
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What are the 3 Natural Laws of Economics created by Adam Smith?
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1. Law of Self Interest- people work for their own goods.
2. Law of Competion- competion forces production of better products. 3. Supply and Demand- goods are produced at lowest price to meet demands of the market. |
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What is a Mixed Economy?
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people and gov. share the decision making process. production is controlled privately but the gov. regulates it.
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What are the 3 basic ways businesses are organized?
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*Sole Propietorship
*Partnership *Corporations |
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Sole Propietership?
Examples? Advantages, Disadvantages? |
-one person or couple that share the business, income, assets, and risk.(gas stations, restaurants, grocery stores) Ad: own boss
Dis: owners take all risk |
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Partnerships?
Examples? Advantages, Disadvantages? |
two or more people own bus.( doctors, lawyers, constuction companies) Partners share profits aswell as risks.
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Corporations?
Examples? Advantages, Disadvantages? |
large business w/ many oweners
apply for charter that gives them the o.k to form business. company can raise $ by selling share ownership called stocks. |
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Dividend?
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share of the corporations profits that are distributed to the shareholders.
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Limited Liability?
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when a business owner's responsibility for a company's debts is limited.
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Preferred Stock?
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A fixed dividend recieved each year the company makes a profit.
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People who invest in a corporation buy____________
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Common
Stock |
