Reading...
Play button
Play button
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;
30 Cards in this Set
- Front
- Back
|
What is a need?
|
A need is something essential for survival such as food or medical care
|
|
|
What is the "problem of limits"
|
It's when no one can have an endless supply of anything
|
|
|
What is "scarcity"?
|
Scarcity is when limited amount of goods and services are available to meet unlimited wants
|
|
|
What is economics?
|
Economics is the study of how people seek to satisfy their needs and wants by making choices
|
|
|
What is an entrepreneur?
|
they are people who decide how to combine resources to create new goals and services
|
|
|
What is land?
|
refers to all natural resources used to produce goods and services
|
|
|
What is labor?
|
is the effort people devote to tasks for which they are paid
|
|
|
What is "guns and butter"?
|
common choices facing government: choices between spending money on military or domestic needs
|
|
|
What is opportunity costs?
|
The most desirable alternative somebody gives up as the result of a decision
|
|
|
What is "thinking at the margin"?
|
deciding whether how much more or less to do
|
|
|
What is marginal cost?
|
Is the extra cost of adding one unit
|
|
|
What does a production possibilities curve do?
|
is a graph that shows alternative ways to use an economy's productive resources
|
|
|
What is efficiency?
|
it is the use of resources in such a way as to maximize the outputs of goods and services
|
|
|
What is under-utilization?
|
the use of fewer resources than an economy is capable of using
|
|
|
What are 3 key questions society must answer?
|
What goods and services should be produced?
How should these goods and services be produced? Who consumes these goods and services? |
|
|
What is profit?
|
profit is the amount of money a business receives in excess of it's expenses
|
|
|
What is a safety net?
|
sets of programs to protect people who face unfavorable economic conditions such as layoffs, injuries, or natural disasters
|
|
|
What is a "traditional economy"?
|
an economic system that relies on habit, custom, or ritual to decide the three key economic questions
|
|
|
What is specialization?
|
its the concentration of the productive efforts of individuals and businesses on a limited number of activities
|
|
|
What is a "product market economy"?
|
is the arena of exchange in which households purchase goods and services from firms
Capitalism, Free market |
|
|
What is an incentive?
|
is the hope of reward or fear of penalty that encourages a person to behave in a certain way
|
|
|
What is competition?
|
economists call this struggle among producers for the dollars of consumers
|
|
|
What is consumer sovereignty?
|
consumers have the power to decide what gets produces
|
|
|
What is a "centrally planned economy"?
|
it's the government, rather than individual producers andconsumers,answer the key economic questions
|
|
|
What is authoritarian government?
|
they're governments that limit individual freedoms and require strict obedience from their citizens
|
|
|
What nation was a centrally planned economy?
|
Communist countries ex. Russia, China
|
|
|
What type of economy does the US have?
|
Mixed economy
|
|
|
What is laissez faire?
|
It's a doctrine in which the government shouldn't intervene w/ the market
|
|
|
What is a "mixed economy"?
|
It's a market-based economic system in which the government is involved to some extent
|
|
|
What does a circular flow model show?
|
the graph shows how much money flow through the firms, government and households
|
