1st Quarter Exam (1) Flashcards
The study of the choices that individuals make and societies make in the production, distribution, and consumption of goods.
Economics
Any system for the production, distribution, and consumption of goods and services
Economy
Some people refused to work
What was wrong with the Pilgrim’s system?
Scholars of the PDC ( production distribution and consumption ) of goods within an economy
Economists
The study of national and international economies and how these major economies are affected by large-scale choices and public policies
Macroeconomics
The study of specific components within a major economy and how the choices made by individuals, households, and business affect that economy.
Microeconomics ( Greek for small )
Models that show the relationships among the various components of an economy
Economic models
Something to help people that make decisions, make wise choices
Economic forecast
A tangible item that people want and for which they will pay
Good
Intangible goods produced by labor for which people expect to pay
Services
The human desire to have and use a certain good
Want
A mechanism that allows people to exchange goods
Market
Very large number who want a large quantity of a product
Mass market
The quantity of a good for sale at a certain price under certain conditions, or the amount of a good that’s produced
Supply
The amount of a good that is bought at a certain price under certain conditions
Demand
An old word for the bad habit of spending More than you can afford
Prodigality
Necessity, something that would be difficult to live without
Need
Desire, a longing, an appetite for something
Want
Anything used in the production and distribution of goods and services
Capital or investment good
Things produced for direct use by consumers
Consumer goods
The worth that consumers attach to iTunes
Value
Rare items such as diamonds normal command high prices while necessities such as water usually command low prices. Since diamonds are scarce, they are worth more. But a person who is dying of thirst would pay a lot more for water
What does the diamond-water paradox say?
Natural Resources Labor Capital Entrepreneurship
What are the factors of production?
Natural Resources (includes and and other raw material)
What is the first factor of production?
The thing you gotta understand about economics
All goods have to be worked for
Producers
Providers
Consumers
Users
Utility
Usefulness
Scarcity
Limited availability
Who decides the price for a good?
The consumer
Who is the founder of the Austrian school of economics?
Carl Menger
What economic system is based on traditions, heredity or caste?
traditional economy
What economic system is controlled by a centralized authority?
commanded economy
What in economic system are the people free to make their own economic choices?
Free enterprise
What is a economy called that has several different economic systems?
Mixed economy
What term refers to work that contributes to the production of goods?
Labor
What economic system barely provides enough for the society to survive?
Subsistence economy
In what type of capitalistic system is most of the nations capital owned privately?
Private capitalism
In what type of capitalistic system is most of the nations capital owned and ran by the state?
State capital
What is considered the intelligent direction and supervision of natural and human economic resources?
Entrepreneurship
What is the name of a person who takes risks in theintelligent direction and supervision of natural and human economic resources on a bold scale?
Entrepreneur
Who is considered one of the early captains of industry?
Du Pont
T or F Are all nations one type of economic system?
False. no nation has one they all have a mixture of a couple different economic systems
The relationship between a good’s price and the amount that producers are willing to provide for consumers.
Supply
The relationship between a good’s price and the amount that people are willinag to buy.
Demand
Value that is directly related to the benefits their owners receive through their use.
Value in use
What a particular good is worth in exchange for some other good.
Value in exchange
The amount of money that a buyer pays the seller for a particular item.
Price
Those prices at which goods can be sold in an open market with many potential sellers and buyers.
Market prices
