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100 Cards in this Set

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  • Back
1. Economics
1.The study of how people seek to satisfy their needs and wants by making decisions
2.Scarcity
Limited quantities of resources to meet unlimited wants
3. Opportunity Costs
The most desirable alternative given up as the result of a decision
4. Trade Offs
An alternative we sacrifice when we make a decision
5. Entrepreneur
Ambitious leader who combines land, labor, and capital to create and market new goods or services
6. factors of production
Land, labor, and capital; the three groups of resources that are used to make all goods and services
7. Productions Possibility Curve
A curve that shows alternative ways to use an economy’s resources
8. Law of increasing costs
As we shift factors of production from making one good or service to another, the cost of producing the second item decreases
9. satey net
Government programs that protect experiencing unfavorable conditions
10. traditional economy
Economic system that relies on habit, custom, or ritual to decide the questions of production and consumption of goods and services
11. Market economy (free enterprise)
Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets
12. centrally planned economy
Economic system in which the central government makes all decisions on the production and consumption of goods and services
13.factor market
Market in which firms purchase the factors of production from households
14. product market
The market in which households purchase goods and services that firms produce
15. adam smith
Man who devolved the idea of capitalism and is considered the “father of the free market. Wrote “The Wealth of Nations
16. underutilization
Using fewer resources than an economy is capable of using
17. Gross Domestic product (GDP)
The total value of all final goods and services produced in a particular economy; the dollar value of all final goods and services produced within a country’s borders in a given year
18. business cycle
A period of macroeconomic expansion followed by a period of contraction
19. public good
A shared good or services for which it would be impractical to make consumers pay individually and o exclude non-payers
20. free rider
Someone who would not choose to pay for a certain good or device but who receives the benefits of it anyway if it were provided as a public good
21. market failure
A situation in which the market does not distribute resources efficiently
22. externality (pos/neg)
An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
23. in-kind-benefits
Goods and services provided for free or at greatly reduced prices
24. law of demand
Economic law that states that when its demans decreases and less when its price increases
25. inelastic demand
not done
26. inferior good
A good that consumers demand less of when their income increases
27. normal good
A good that consumers demand more of when their income increases
28. complements
Two goods that are brought and used together
29. law of supply
Tendency of suppliers to offer more of a good at a higher price
30. inelasic supply
A firm that cannot change its output level easily
31. quota
A set limit of output
32. Tariff
A tax on imported goods
33. subsidy
A government payment that supports a business or a market
34.fixed cost
A cost that does not change no matter how much is produced
35.variabe cost
A cost that increases or decreases depending on the amount made
36. total cost
Fixed plus variable cost
37. total revenue
not done
38. marginal product of labor
The change in output from hiring one additional unit of labor
39.marinal revenue
The additional income from selling one more unit of a good; sometimes equal to price
40. excise tax
A tax on the production or sale of a good
41. marginal product of labor
The change in output from hiring one additional unit of labor
42. regulation
Government intervention in a market that affects the production of a good
43. incresing marginal returns
A level of production in which the marginal product of labor increases as the number of workers decrease
44. decresing marginal returns
A level of production in which the marginal product of labor decreases as the number of workers increase
45. equlibrium
The point at which quantity demanded and quantity supplied are equal
46. proce ceiling
A maximum price that can be legally charged for a good or service
47. price floor
A minimum price for a good or service
48. surplus
Situation in which quantity supplied is greater than the quantity demanded
49. shortage
A situation in which a good or service is unavailable or when quantity supplied is less than the quantity demanded
50. supply shock
A sudden shortage of a good
51. spillover costs
Cost of production that affects people who have no
control over the amount of a good
52. black market
Market in which goods are sold illegally
53. perfect competition
Large number of firms where all sell the same good
54. barrier to entry
Any factor that makes it difficult to enter a market
55. commodity
Product that is the same in all places, such as petroleum, or notebook paper
56. monopoly
Market dominated by a single seller
57. economies of scale
Factors that cause cost per unit to fall as output rises
58. natural monoply
A market that runs most efficiently when one large firm supplies output
59. monopolistic competition
Market structure in which many companies sell products that are similar but not identical
60. oligopoly
Market structure in which a few large firms dominate the market
61. sole proprietorship
A business owned and managed by a single individual.
62. partnership
A business organization owned by two
Or more persons who agree on a specific
Division of responsibilities and profits.
63. corporation
A legal entity owned by individual
Stockholders.
64. publicly-held corporation
Corporation that sells stock on the
Open market
65. asset
Money and other valuables belonging
To an individual or business.
66. liability
The legally bound obligation to
Pay debts.
67. horizontal merger
The combination of two or more firms
Competing in the same market with the
same good or service
68. verticle merger
The combination of two or more firm.Involved in different stages of producing
The same good or service.
69. cooperative
A business organization owned
And operated by a group of individuals
For their mutual benefit.
70. conglomerate
Business combination merging more
Than three businesses that make the
Unrelated products.
71. multinational
A large corporation that produces and
Sells its goods and services throughout
The world.
72. labor union
An organization of workers that tries
To improve working conditions, wages,
And benefits for its members.
73. collective bargaining
The process in which union and
Company representatives meet to
Negotiate a new labor contract
74. stock
A certificate of ownership in a
Corporation.
75. bond
A formal contract to reply borrowed
Money with interest at fixed intervals.
76. mutual fund
Fund that pools the savings of many
Individuals and invests this money in a
Variety of stocks, bonds, and other financial
Assets.
77. diversifcation
Spreading out investments to reduce risk.
78. blue chip stock
A "blue chip" is the nickname for a stock that
is thought to be safe, in excellent financial
shape and firmly entrenched as a leader in its field.
Blue chips generally pay dividends and are
favorably regarded by investors.
79. recession
A prolonged economic contraction.
80. depression
A recession that is especially long and
Severe.
81. depreciation/ appreciation
(Deprecation) The loss of the value of
Capital equipment that results from
Normal wear and tear or, a decrease in
The value of a currency. (Appreciation)
An increase in the value of a currency.
82. frinctional unemployment
Unemployment that occurs when people
Take time to find a job.
83. structural unemployment
Unemployment that occurs when workers’
Skills of not match the jobs that are
Available
84. cyclical unemployment
Unemployment that rises during economic
Downturns and falls when the economy
Improves
85. seasonal unemployment
Unemployment that occurs as a result of
Harvest schedules or vacations, or when
Industries slow or shut down for a season.
86. underemployment
Working at a job for which one is overqualified,
Or working part-time when full-time work is
Desired.
87. workfare
A program requiring work and purposeful activity;
System of values that gives central importance to work
88. entitlement
Social welfare program that people are “entitled”
To if they meet certain eligibility
Requirements.
89. expenditure
The act of a country spending money
90. supply-side economics
a school of economics that believes tax
Cuts can help an economy by raising
Supply.
91. monetary policy
The actions the Federal Reserve takes to
Influence the level of GDP and the rate
Of inflation in the economy.
92. interest rate
A rate which is charged or paid
for the use of money.
93. import
A good that is brought in from another
Country for sale.
94. export
A good that is sent to another country
For sale
95. European Union
A regional trade organization made up
Of European nations.
96. trade surplus
The result of a nations exporting more
Than it imports.
97. trade deficit
The result of a country’s importing
More than it exports.
98. absolute advantage
The ability to produce more of a given
Product using a given amount of
Resources.
99. comparative advantage
The ability to produce a product most
Efficiently given all the other products
That could be produced.
100. balance of trade
The relationship between a nations’
Imports and exports.