Texes 232 Domain Vi: Economics And Science, Technology And Society

Front 1

scarcity

Back 1

the basis of economics. the more scare something is, normally the more it is worth

Front 2

opportunity costs

Back 2

when someone chooses to buy one item, then he/she will not be able to spend that same money on something else. what is not bought is called opportunity cost. it is what was given up to get something else.

Front 3

circular-flow of money

Back 3

when someone buys something, money flows from households to businesses. In turn, businesses employ people. Employees receive money from businesses. This is the circular flow of money.

Front 4

supply and demand

Back 4

supply is how much a producer is willing to produce at a given price. demand is how much consumers are willing to buy at a certain price. the key for producers and consumers is to find the equilibrium price that will bring in the most consumers at a level that will be beneficial to producers.

Front 5

capitalism

Back 5

market economy

Front 6

communism

Back 6

command economy

Front 7

traditional economy

Back 7

one does what his/her father did. this system was the basis for Neolithic societies and most pre-industrial countries. Today, this system is found in developing countries where subsistence agriculture (producing just enough for personal survival) dominates.

Front 8

command economy

Back 8

associated with communism. in this system the government determines prices and what is produced. Karl Marx is most associated with this system.

Front 9

market economy

Back 9

associated with capitalism and free enterprise. in this system the market (consumers and producers) determines prices and what is produced. supports pure competition.

Front 10

pure competition

Back 10

the market economy supports pure competition. this is where everyone has the opportunity to engage in the producing and consuming aspects. anyone with the means and desire can become a producer of an item. the more producers and economy has, the more competition. as consumers view their choices for a product they will consider price and the quality of the product being offered.

Front 11

monopoly

Back 11

one producer or business that emerges to control an entire market. under capitalism, a lack of producers undermines the competition aspect and threatens the market system. some monopolies are accepted, such as local water utilities.

Front 12

oligopoly

Back 12

when just a few companies control the majority of the market. normally permitted as long as they do not conspire to set prices. ex: the big three American automakers.

Front 13

absolute advantage

Back 13

refers to a country that can produce at an item at less cost than another country.

Front 14

comparative advantage

Back 14

refers to a country that has less opportunity cost in producing an item.

Front 15

john maynard keynes

Back 15

a major modern economic capitalist philosopher. Keynesian economics is the driving factor behind the U.S. monetary policy. Through monetary policy the government controls the supply of money through determining interest rates. When the government believes that more money should be in the economy, then the interest rates are reduced (through the FED) and banks loan more money to businesses and individuals. That money is in turn used to build factories, buy homes etc. If the government determines that less money should be in circulation (such as during inflation when money losses value) then the FED will raise interest rates so that less loans will be made and less money will be circulated. As the level of money in circulation decreases, then the value of money increases.
Another way to increase and decrease money is through the fiscal policy. Fiscal policy is determined by congress and the president and concerns the level of taxes and spending by the federal government. Unfortunately, fiscal policy is more politically motivated than monetary policy (there's no election process for members of the FED) and fiscal policy takes longer than monetary policy to carry out, so fiscal policy is normally considered less stable than monetary policy in controlling the money supply.

Front 16

karl marx

Back 16

associated with command economy.

Front 17

adam smith

Back 17

wrote a book in 1776 The Wealth of Nations that documented the world economies that were more successful than others. One of his major findings was that the countries that were most successful had limited government involvement in basic economic decisions. This lack of government decision-making was coined "laissez faire" and remains a fundamental principal in most western economies. he also addressed monopolies.

Front 18

free enterprise

Back 18

associated with a market economy.

Front 19

free trade and the effects of trade barriers

Back 19

free trade refers to when goods can be exported and imported without tariffs. tariffs are taxes on imported goods and often are used to protect domestic businesses. When countries have free trade agreements, goods are exchanged without tariffs. This is the case in NAFTA - the free trade agreement between the U.S., Canada, and Mexico.

Front 20

economics

Back 20

the study of how goods, services, and property is produced, distributed, and consumed

Front 21

exchange rate

Back 21

refers to how much one country's currency is worth in relation to another country's currency. countries that have a lower exchange rate can normally expect more goods.

Front 22

free enterprise system

Back 22

through banks and credit unions individuals and businesses can save, invest, and borrow money. all of these functions are vital to our free enterprise system.

Front 23

profit motive

Back 23

people want to make money

Front 24

Sherman antitrust act

Back 24

said that to hinder competition was illegal. law against monopolies that hindered competition or made competition impossible.

Front 25

tariff

Back 25

government has the ability to set tariffs. tariffs are taxes on goods that are imported. The GETT general agreement on tariffs and trade is an international set of guidelines that are used to encourage trade between countries. GATT set guidelines for tariffs. the U.S. has used tariff policies to help protect domestic businesses.

Front 26

sole proprietorship

Back 26

one individual owns a business. one person is responsible for financing and managing the business. a disadvantage is that the only capitol available is what one person can secure. can be sued personally for such things as accidents in his or her business.

Front 27

partnership

Back 27

when two or three people join to open a business together. a benefit to this type of business is that the financial resources and risks can be shared by all in the partnership. disadvantages include loss of autonomy and the fact that the partners could still be held personally liable for accidents in the business.

Front 28

corporation

Back 28

normally has several initial investors and organizes a formal organization. They choose a name and the business really becomes a second entity. corporations have to be registered with the state and the owners of the corporation can not be held personally liable in civil cases.

Front 29

federal reserve system

Back 29

the major controller of the money supply through monetary policy. then the FED determines that more money needs to be put in the economy (normally to increase employment), then the FED can lower interest rates so that loans are easier to secure and businesses to expand. When the FED determines that less money should be in circulation (normally to increase deflation) then the FED can raise interest rates so that loans are harder to secure.

Front 30

private property rights

Back 30

Property rights are theoretical constructs in economics for determining how a resource is used and owned. Resources can be owned (the subject of property) by individuals, associations or governments.[1] Property rights can be viewed as an attribute of an economic good. This attribute has four broad components[2] and is often referred to as a bundle of rights:[3]
1.the right to use the good
2.the right to earn income from the good
3.the right to transfer the good to others
4.the right to enforcement of property rights.

In economics, property usually refers to ownership (rights to the proceeds of output generated) and control over a resource or good.

Front 31

voluntary exchange

Back 31

consumers choose to buy and sell

Front 32

different ways money can be invested

Back 32

savings accounts
bonds
stocks

Front 33

clayton antitrust act

Back 33

outlawed price discrimination, charging different customers different prices for the same product

Front 34

federal trade commission act

Back 34

allowed actual government enforcement of clayton antitrust act

Front 35

robinson patman act

Back 35

companies could no longer offer special discounts prices only to certain customers (clarified clayton trust act)

Front 36

economic effects on the war

Back 36

when a country goes to war, it normally vastly increases the economic output of the country. the government the mass production of war-related materials. men go off to war so women move into the workforce.

Front 37

industrial revolution

Back 37

changed the economic system of the world; however, it would not have been possible without scientific inventions and advancements such as:
-jethro tull's seed drill to assist in planting crops.
-james watt invented the steam engine that would be the major power source of the industrial revolution.
-spinning jenny was used to make thread
-power looms was used to take the thread and make cloth at a fast rate.
-Robert Fulton's steam locomotive allowed for a transportation revolution.

Front 38

scientific revolution

Back 38

brought about a new system of thinking about science. the most famous scientists from this era were astronomers.
*consequences of scientific advancements have major moral and ethical issues attached to them

Front 39

Copernicus

Back 39

Copernicus who first detailed the heliocentric (sun centered) view of the universe

Front 40

Galileo

Back 40

Galileo who used a homemade telescope to observe planetary motions.

Front 41

Isaac newton

Back 41

ushered in the age of physics with his discoveries of gravity and the development of calculus

Front 42

marie curie

Back 42

radioactive elements (allowed for x rays)

Front 43

Thomas Edison

Back 43

major inventor in American history. phonograph (record player), the movie camera, and the light bulb.

Front 44

Einstein

Back 44

theory of relativity (fundamentally changed physics)

Front 45

Fulton

Back 45

Robert Fulton's steamed locomotive allowed for a transportation revolution.

Front 46

Bessemer steel process

Back 46

American inventor, henry Bessemer, created a way to mass produce steel that was used to build skyscrapers.

Front 47

European science, math, and technology

Back 47

the earliest European science and math advances were from the greeks and romans. the greeks were very advanced in math with the development Pythagorean theorem and Euclid's geometry. Archimedes discovered the advances of lifting heavy objects through a lever and pulley system while Hippocrates conducted research into what caused disease and how to cure it (today, doctors take the Hippocratic oath). Aristotle wrote extensively about science, including zoology and botany while Ptolemy proposed that the earth was the center of the universe (widely accepted until the 17th century). The Romans major contributions were in the field on engineering with great advances in architecture. The Romans designed the arch and the dome that allowed bigger building to be built. They also routed water from mountains and into cities through aqueducts (some still work today).

Front 48

William harvey

Back 48

discovered that the heart pumps the blood through the human body.

Front 49

Native American Advances

Back 49

The Mayans were a prolific group who had an advanced writing system and had one of history's most advanced calendars. the Mayans also had knowledge of planets that was far more advanced than other societies. They had the engineering ability to build massive stone pyramids.
The Aztecs also had an advanced calendar and a writing system. The Aztecs had the ability to drain lakes and swamps to allow for selected building locations.

Front 50

Chinese discoveries

Back 50

the Chinese had many advances in math and science. such as:
-textbooks were written on zoology, botany, and chemistry.
-accurate astronomy-based clocks and calendars.
-invented paper
-invented rudders (used to steer ships), fishing reel, and wheel barrow.
-acupuncture

Front 51

Islamic discoveries

Back 51

the Islamic world also made huge advances in science and math. such as:
-ibn sina wrote a comprehensive medical textbook that was used by Europeans.
-elaborate calligraphy designs in architecture.
-improved upon roman arches and domes to build massive structures
-al-khwarizimi pioneered a branch of math called algebra
-calculated the circumference of the earth (pretty close to accurate) and also studied eclipses and the rotation of the planets.
-doctors had to pass exams to practice medicine
-treatment for cataracts

Front 52

"Modern Science"

Back 52

the world has witnessed major changes in the scientific world. many inventions have changed daily human life. These have included: radio, tv, automobile, airplanes, telephone, and computers. Modern medicine provides vaccines against diseases and antibiotics.

Front 53

In a competitive market the equilibrium price of a good is determined by the interaction of supply and demand. If the price of a good is above the market equilibrium, there will be a:

Back 53

surplus of the good in the market because the quantity supplied exceeds the quantity demanded. (A surplus of the good is created when the price is set above the market equilibrium, resulting in the quantity supplied exceeding quantity demanded.)

Front 54

Economic Indicators:
Unemployment rate 9.6%
GDP growth rate –4.2%
Inflation rate 2.9%
The economy of the country described in the table is undergoing which stage of the business cycle?

Back 54

Recession, (The table shows that the country has a high unemployment rate, is experiencing contraction in its Gross Domestic Product (GDP), and has a relatively low inflation rate. Such types of data are typical of economies that are in the recession phase of the business cycle.)

Front 55

Which of the following is the main incentive for entrepreneurs to take risks to start a business?

Back 55

Profits. (Entrepreneurs take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.)

Front 56

Assume that the demand for soft drinks is relatively inelastic. If the government imposes a per-unit tax on the sale of soft drinks, which of the following correctly identifies how the tax will affect the quantity demanded in the market and who will pay the largest portion of the tax?
Quantity Party that Pays;
Demanded Largest Portion of Tax

Back 56

Will decrease; Buyers (Imposing a per-unit tax on soft drinks will shift the supply curve to the left (or upward) by the amount of per-unit tax, resulting in a higher price to the consumers, thus decreasing the quantity demanded. Because the demand curve is relatively inelastic, buyers will be less responsive to the higher price of soft drinks that results from the tax. As a result, sellers will be able to pass the greater portion of the tax in the form a higher price on to buyers. Thus buyers will bear the larger portion of the tax burden.)

Front 57

President Eisenhower signed the Federal-Aid Highway Act in 1956, which he promoted as a benefit to national defense. The act also had the benefit of promoting the national goal of:

Back 57

full employment (Government spending on infrastructure projects such as roads increases aggregate demand and encourages firms to hire more workers to meet the higher demand, a process that can eventually lead to full employment. President Eisenhower and his advisors hoped to stimulate the economy with this infusion of government spending.)

Front 58

A geography teacher is most likely to use the term “cultural convergence” when discussing:

Back 58

contact and interaction between different cultures. (The term “cultural convergence” refers to the idea that the availability of media such as the Internet, printed text, television and radio tends to provide groups of people from different regions more access to other cultures. Such access may lead to the adoption of cultural traits and cultural forms by different groups and may lead to greater cultural similarities.)