Zecon Midterm

Front 1

the study of how individuals and nations make choices about how to use scarce resources to fulfill their wants

Back 1

Economics

Front 2

anything that people can use to make or obtain what they want

Back 2

Resource

Front 3

when people do not and cannot have enough income, time, or other resources to satisfy their every desire

Back 3

Scarcity

Front 4

natural resources

Back 4

land

Front 5

human resources

Back 5

labor

Front 6

all the property people use to make other goods and services

Back 6

capital

Front 7

the ability to produce greater quantities of goods and services in better and faster ways

Back 7

productivity

Front 8

refers to the ability of individuals to start a new business, to introduce new products and techniques, and to improve management techniques

Back 8

entrepreneurship

Front 9

use of science to develop new products, and new methods for producing and distributing goods

Back 9

technology

Front 10

tradition dictates the role in which each individual plays, "the way they have always been done"

Back 10

traditional economic system

Front 11

individual has little, if any influence over how the basic economic questions are answered

Back 11

command economic system

Front 12

government does not intervene and individuals own the factors of production

Back 12

market economic system/capitalism

Front 13

includes characteristics of command and pure market economies

Back 13

market mixed economy

Front 14

a system in which government has little to do with the nation's economic activity. Individuals left on their own would work for their own self-interests and be guided by this.

Back 14

invisible hand

Front 15

an economic system which private individuals own the factors of production and decide how to use them within the limits of the law

Back 15

capitalism

Front 16

fair and just

Back 16

equity

Front 17

explains how people react to changing prices in the terms of the quantites of a good or service that they purchase

Back 17

Law of Demand

Front 18

when a buyer and a seller exercise their economic freedoms by working out on thier own terms of exchange

Back 18

voluntary exchange

Front 19

if the price of one of the items rises in relation to the price of the other, people will substitute the now lower-priced good.

Back 19

substitution effect

Front 20

when the price greatly affects the amount people are willing to buy (goes down)

Back 20

elasticity

Front 21

if a price change does not result in a substantial change in the quantity demanded (stays)

Back 21

inelasticity

Front 22

the willingness and ability of producers to provide goods and services at different prices in the marketplace/ as the price rises for goods the quantity supplied rises. As the price falls, the quantity supplied also falls.

Back 22

Law of Supply

Front 23

the level where the quantity supplied and the quantity demanded are balances

Back 23

equilibrium price

Front 24

when the quantity demanded is greater than the quantity supplied

Back 24

Shortages

Front 25

when suppliers produce more than consumers want to purchase in the marketplace

Back 25

Surpluses

Front 26

when a market includes so many sellers of a particular good or service that each seller accounts for a small part of the total market

Back 26

Perfect competition

Front 27

a single seller controls the supply of a good or service and thus determines the price

Back 27

pure monopolies

Front 28

produce products for lowest cost and force competitors out of business, need large investements, more efficient to have one company

Back 28

natural monopolies

Front 29

best location, but less important now; customers can buy from catalogs, ect.

Back 29

geographic monopolies

Front 30

seller has a government patent, the right to exclusively manufacture an invention for a specified number of years

Back 30

technological monopolies

Front 31

created by legal barriers to entry

Back 31

government monopolies

Front 32

is an industry in which a few suppliers that exercise some control over price dominate

Back 32

oligopoly

Front 33

a large number of sellers offer similar but slightly different products

Back 33

monopolistic competition

Front 34

when one corporation joins with another

Back 34

merger

Front 35

two corporations are in the same bussiness and one mergers with the other

Back 35

horizontal merger

Front 36

when a business that is buying from or selling to another bussiness merges together

Back 36

vertical merger

Front 37

buying out another corporation dealing in totally unrelated activites

Back 37

conglomerate merger