Chapter 1 & 2 vocab Flashcards
Need
A basic requirement for survival
Gross Domestic Product (GDP)
The monetary value of all final goods, services, and structures produced within a country’s borders in a year/12-month period.
Want
Something we’d like to have but isn’t necessary for survival
Scarcity
The condition that results from society not having enough resources to produce all the things people would like to have
Value
A worth that can be expressed in dollars and cents
Nondurable good
An item that lasts for less than three years when used on a regular basis
(ex: food, writing paper, and most clothing items)
Capital good
A tool/good such as machinery or equipment that’s used by businesses to produce other products
Economics
The study of how people try to satisfy seemingly unlimited and competing needs and wants through the careful use to relatively scarce resources
Land
Earth’s surface that most of human activity has occurred
Capital
Seen at the most important city in a nation, usually the position of government administration
Entrepreneurs
Individuals who run a business or multiple businesses that assume a great deal of responsibility and financial risk
Produce market
Where goods and services are sold to public sectors and businesses, excluding raw materials
Production Possibilities Curve (PPC)
Curve that illustrates the variations in the amounts that can be produced of two products if both depend upon
Consumerism
A social and economic order that encourages the acquisition of goods and services in ever-increasing quantities
Specialization
Becoming an expert in a certain field or area
Economic Interdependence
Transactions between two countries or multiple countries to acquire products they can’t produce efficiently
Standard of living
Amount of material, income and services available to a society or person
Black Market
Illegal market that occurs outside of government control
Capitalism
An economic/political system in which individuals own sectors for the means of production and self profit
Command economy
An economic system where prices and income are determined by the government
Economic system
A system where governments supply available resources/goods across a nation
Five-year plan
A nation’s plan for economic growth over the course of five years
Great Leap Forward
Economic campaign led by Chinese communists from 1958-1962 to reconstruct the economy (rapid industrialization)
Market Economy
A system of economic decisions guided by the price signals of supply and demand
Nationalization
Process where a nation or state takes control of a specific industry/business
Privatization
The transfer of ownership of a business/property from the government to a private sector
Traditional economy
The use of scarce resources and nearly all other economic activity stems from ritual, habit, or custom
Communism
Economic/political system in which factors of production are collectively owned and directed by the state
–A theoretically classless society in which everyone works for the common good
Mixed economy
A market economy with elements of private and public sectors
Socialism
An economic/political system in which the government plays owns some, but not all, of the factors of production
Great Depression
Worst period of economic decline in US history beginning in 1929 to 1939
Capital-intensive
Amount of capital present in factors of production, especially labor
European Union
Economic union stationed in Europe between 27 European countries
–Largest single unified marker in the world in terms of population and output
Collectivization
The organization of all a nation’s productions and industry into government ownership and control
