Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
35 Cards in this Set
- Front
- Back
market economics (laissez-faire, "free market, orthodox economics)
|
an economic system in which economic decisions are left to individual producers and consumers
|
|
production inputs (land, labor, capital)
|
the resources, or factors of production, used in the production of output by a firm
|
|
rent
|
the payment for use of a resource, whether it be land, labour, equipment, ideas, or even money. The term is often restricted to payment for use of land or equipment
|
|
wages
|
The portion of the national product that represents the aggregate paid for all contributing labor and services as distinguished from the portion retained by management or reinvested in capital goods
|
|
profit
|
the money earned by a business after subtracting its operation costs
|
|
efficient allocation (efficient and scarcity)
|
The process of dividing up and distributing available, limited resources to competing, alternative uses that satisfy unlimited wants and needs.
|
|
opportunity cost
|
the value of the next best alternative that is given up when making a choice; a measure of what you must give up to get what you want
|
|
law of supply
|
an economic law stating that as the price of a good or service increases, the quantity supplied increases, and vice versa
|
|
law of demand
|
an economic law stating that as the price of a good or service increases, the quantity demanded increases, the quantity demanded decreases, and vice versa
|
|
price
|
the amount of money that has to be paid to acquire a given product
|
|
competition
|
The effort of two or more parties to secure the business of a third party by offering, usually under fair or equitable rules of business practice, the most favorable terms.
|
|
mortgage and subprime mortgage
|
money borrowed to buy a house, an office building, land, or other real estate; A type of mortgage that is normally made out to borrowers with lower credit ratings
|
|
stock exchange (Dow Jones, NSDAC, DAX)
|
An exchange on which shares of stock and common stock equivalents are bought and sold
|
|
Marxian Economics
|
focuses on the role of labor in the development of an economy, and is critical of the classical approach to wages and productivity developed by Adam Smith; argues that the specialization of the labor force, coupled with a growing population, pushes wages down, and that the value placed on goods and services does not accurately account for the true cost of labor
|
|
capital (means of production)
|
the tools, machines, and buildings used to produce goods and services; one of the factors of production
|
|
bourgeoisie (businessmen, entrepreneurs)
|
the ruling class of the two basic classes of capitalist society, consisting of capitalists, manufacturers, bankers, and other employers. The bourgeoisie owns the most important of the means of production, through which it exploits the working class
|
|
labor (proletariat, working classes)
|
the time and effort people devote to producing goods and services in exchange for wages; one of the factors of production
|
|
unions
|
An organization intended to represent the collective interests of workers in negotiations with employers over wages, hours and working conditions.
|
|
ideology
|
a system of ideas which attempts to explain reality
|
|
class struggle
|
the struggle for political and economic power carried on between capitalists and workers
|
|
left (pro-labor)
|
support for social change to create a society with a more egalitarian structure; usually involve a concern for those in society who are disadvantaged relative to others and an assumption that there are unjustified inequalities
|
|
right (pro-business)
|
support for a hierarchically ordered society
|
|
Keynesian economics
|
argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle
|
|
government intervention
|
Actions on the part of government that affect economic activity, resource allocation, and especially the voluntary decisions made through normal market exchanges
|
|
fiscal policy
|
government policy regarding taxing and spending
|
|
monetary policy
|
central bank policy aimed at regulating the amount of money in circulation
|
|
investment (planned investment)
|
An asset or item that is purchased with the hope that it will generate income or appreciate in the future.
|
|
interest rate
|
The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
|
|
consumption
|
the value of goods and services bought by people
|
|
price controls
|
government-imposed limits on the prices that producers may charge in the market
|
|
minimum wage laws
|
Laws stating a wage below which employers may not legally pay employees for specific kinds of employment
|
|
microeconomics
|
the study of the economy at the level of individuals, households, and businesses
|
|
macroeconomics
|
the study of the workings of the economy as a whole
|
|
value
|
the worth of a good or service as determined by the market
|
|
economic problem
|
(1) that there's never enough resources to produce everything that everyone would like produced; people are not satisfied, we keep wanting more things (2) how absolute needs need to be met and with those needs met capitalism will not be needed any more
|