American Cit.
Terms
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- economics
- the study of how we make decisions in a world where resources are limitied
- fixed costs
- expenses that are the same no matter how many units of good are compared
- whether to improve roads or build school
- society's choice of WHAT to produce might involve deciding
- quality
- the Gross Domestic Production does not accurately reflect a product's improvement in
- economic freedom
- we make our own decision
- competition
- the struggle that goes on between buyers and sellers to get the best products of the lowest prices
- 4 factors of production
- natural resources, labor, capital, and entrepenuers
- models
- simplified represenations of the real world
- entrepreneurs
- individuals who start new businesses, introduce new products, and improve management techniques
- voluntary exchange
- the act of buyers and sellers freely and willingly engaging in market transactions
- marginal benefet
- our concern with the additional or extra benefet associated with an action is reffered to as a concern with the
- natural resources
- fertile fields, abundant rainfall, forests, nimeral deposits are what we call gifts of nature to make products
- voluntary exchange 1
- 1 our right to choose the job we would like to have is this feautre of capitalism
- Gross Domestic Product
- total value, in dollars, of all the final goods and services produced in a country during a single year
- secondhand
- which type of sales are NOT counted as part of the Gross Domestic Product
- needs
- things that are required for survival, such as food, clothing, and shelter
- productivity
- a measure of the amount of output produced by a given amount of inpouts in a certain period of time
- Adam Smith
- scottish economist and philosopher who book was Wealth of Nation that described the life and trade in English society
- markets
- what feautre of capitalism connects the different sectors of the economy
- 1200s
- the opening of trade routes to the East, which started major changes in the economic organization of Europe that began in what year
- the profit motive
- the driving force that encourages indivuduals organizations to improve their material well being known as
- consumer sovereignty
- term that describes the consumer as ruler of the market
- economic model
- which term refers to a mechanism that an economist uses to answer a questoin for which there is no obvious or easy answer
- HOW to produce
- the question of how much pollution we should allow factories that manufacture products to generate falls under which of society's economic choices
- consumer goods
- which of the following is NOT a factor of production and are things like clothes, clocks, shoes, foods, and radios
- economic interdependance
- relying on others and others relying on us to provide goods and services to consume
- oppurtunity cost
- which term refers to what you cannot buy or do when choosing to do one thing rather than another
- laissez-faire
- the philosophy that government should not interfere in the marketplace
- consumer
- which market sector purchases the largest share of all output
- cost-benefit analysis
- becasue rational economic decision making tells us to choose an action when the benefits are greater than the costs, which economic model should you use to analyze a decision
- wants
- things we would like to have such as entertainment and vacations
- private property rights
- what feature of capitalism gives people the incentive to work, save, and invest, so that they can keep any gains that they might earn
- services
- work that is performed for someone else such as haircuts, home repairs, and forms of entertainment like concerts
- levels of government sector
- federal, state, and local
- business sector
- who recieves payments in the product markets where they sell goods and services to consumers
- governemnt sector
- produces goods and services, like national defense, health, and education, etc.
- marginal cost
- the extra cost of producing one additional unit of output
- WHEN to produce
- which of the following is NOT one of the choices a society has to face regarding its resources
- trade-off
- which term refers to the exchange that happens when we choose to have more pollution free air by driving less
- profit
- the amount of money left over after all the costs of production have been paid
- capital goods
- satisfty wants indireclty by aiding production of consumer goods
- specializatoin
- when people or groups concentrate on goods or services that they can produce better than anyone else
- standard of living
- quality of life based on the possesion of neccessaties and luxuries that make life easier
- product market
- type of markets where producers offer goods and services for sale
- marginal revenue
- the change in total revenue that results from selling more unit of output
- factor market
- type of markets where productive resources are bought and sold
- variable costs
- expenses that change with the number of products produced
- scarcity
- what occurs whenever we do not have enough resources to produce all of the things we would like to have
- factors in labor
- population growth, immigration, education, war, adn disease
- total revenue
- number of units sold multiplied by the average price per unit
- labor
- the physical and mental talents that people contribute to the production of goods and services
- taxes on businesses and individuals
- from where does the government sector receive most of its revenues
- foreign
- which market sector is the only one that the US sells products to as well as buys products from
- Capital
- ___ goods aid the production of consumer goods
- final good
- good used such as a loaf of bread sold to its user
- goods
- tangible products like books and cars
- the division of labor
- breaking a job down into seperate, smaller tasks, which are performed by differnt workers is known as
- capital
- the equipment and tools used to build your school are an example of which factor of production
- human capital
- productivty tends to increase when businesses invest in _____ the sum of the skills, abilites, and motivation of people
- economy
- all the activity in a nation that together affects the production, distribution, and use of goods and services