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31 Cards in this Set
- Front
- Back
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What is the slope of a horizontal line? |
Zero slope |
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What is the slope of vertical line? |
Infinite |
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When firms use funds to purchase machinery, build factories, office buildings, and other forms of physical capital, they are engaging in____________________. |
Bussiness Fixed Investment or Investment |
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A chain saw is an example of what factor of production? |
Captial |
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What are the factors of production? |
-Land -Labor -Capital -Entrepreneurship |
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Countries engaged in international trade specialize in production based on the principle of _________________. |
Comparative advantage |
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In terms of the circular flow diagram, households make expenditures in the _________ market and receive income through the ________ market. |
1. product 2.factor |
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The four sources of income for households are? |
1.wages 2.rent 3.interest 4.profit |
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Two other sources of economic growth |
increase in quality or resources and increase in quantity of resources. |
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Two variables are inversly related if they change in opposite ways. |
Inverse (negative) relationship |
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Both Variables move together and do the same thing |
Direcrt (positive) relationship |
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A zero association between two variables when one variable changes |
Independant relationship |
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Holding everything else constant |
Ceteris Paribus |
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The study of how society chooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants |
Economics |
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Includes all the "gifts of nature" that are used in the production process such as land, forests, minerals, and all deposits |
Natural Resources |
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Pool of physical and mental talents avaibale to produce goods and services |
Labor |
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Refers to the factory buildings and equipments that can be used to produce other goods and services |
Physical Captial |
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Money that firms spend on building and equipment |
Financial capital |
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The purchase of capital now with the intrest of repaying future benefits from it. or the process of accumulating capital is called? |
Investment |
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Organize, operate, and assume the risk of their business ventures. |
Entreprenuers |
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Scaracity forces us to make choices on how to best use our limited resources is a ____________. |
Economic Problem |
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The thing we give up is called? |
Opportunity cost |
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_________________ is included in the study of macroeconomics |
Unemployment in the nation |
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The ______________________ shows that some of one good must be given up to get more of another good in an economy that is operating efficiently. |
Production possibility curve |
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One of the fundamental characteristic of the market system is? |
Property rights |
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an institution that brings buyer and sellers together is called? |
Market |
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Markets for goods such as computers- and services such as medical treatment |
Product Markets |
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Market for the factor of production such as labor, capital, natural resources, and entrepruenal. |
Factor market |
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A model that illustrates how participants in market are linked |
Circular Flow Diagram |
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- Households sell resources -Firms buy resources to produce goods and services |
Factor market |
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-Firms sell goods and services to households |
Product Market |
