Chapter 16: Economics Flashcards
the study of the management of resources
Economics
the branch of economics that studies how households and firms buy, sell, and allocate resources
Microeconomics
the branch of economics that studies how large economies function as a whole
Macroeconomics
goods used to produce other goods and services
Capital
economist who believed that when people are free to pursue their own financial interests, they indirectly promote the good of society
Adam Smith
the belief that the availability of a good or service creates a demand equal to its value
Say’s law
the Marxist ideal of a classless and stateless utopian society in which all property is commonly owned
Communism
20th century economists that argued that the gov’t should spend borrowed money to stimulate a down economy and generate the revenue to repay its debt
Keynes
an economic system in which capital assets are privately owned, and the prices, production, and distribution of goods and services are determined by competition within a free market
Capitalism
an economic system based on governmental or communal ownership of the means of production and distribution of goods and services
Socialism
an economic system in which the gov’t influences aspects of the market economy in an attempt to improve the public good
Economic intervention
the value of a good or service should be equal to the average number of labor horse required to produce the good or service
Surplus value theory of labor
the belief that human beings are social constructs without any singular identifiable essence, nature, or soul
Decentered self
the belief that an individual’s financial success is directly proportional to his or her level of enlightenment; the belief that positive thought creates wealth
Universal enlightened production
derived primarily from the Quran and Sunnah, it is the economic requirements that govern the lives of Muslims
Shariah economics
