Chapters 1-3 Review Flashcards
Who used his resources wisely to make gunpowder for President Jefferson?
E.I. du Pont
separating work into individualized tasks, an idea stressed by Adam Smith
division of labor
the difference in value of goods that a country sells abroad compared to those it purchases from other countries
purchasing balance
The value associated with any good is directly related to what two tings?
scarcity and utility
What type of economy is directed by govenrment?
command economy
A __ economy provides barely enough to keep a society alive
subsistence
What do some economists list as a fifth factor of production?
information
seeks to show the relationship among the various components of an economy
economic model
According to economists, the factors of production are ___
scarce
an intangible item for which people expect to pay
service
What happens to the prosperity of a national economy when the country finds way to produce more goods from existing resources?
the prosperity increases
Who was the founder of the Austrian school of economics?
Car Menger
economic system that aimed to accumulate stockpiles of gold and silver
mercantilism
Diligent work directed by ingenious intelligence allowed to develop under conditions of freedom is the true source of what?
prosperity
Who is the person that risks his investment of time and money in the management of an economic enterprise?
entrepreneur
a system in which the government controls most of the capital
state capitalism
The prosperity and efficiency of the free market economy is owed to what three things?
foundation of limited government; freedom of enterprise and competition; and property rights
The study of the choices that individuals and societies make concerning what three activities involving goods?
production, distribution, and consumption
an item produces for direct use by consumers
consumer good
__ power does not generate greenhouse gases but has significant disposal problems
nuclear
What are the four factors of production?
natural resources, labor, capital, entrepreneurship
The study of specific components within a major economy
microeconomics
What type of economy is directed by customs and habits?
traditional economy
the establishment of colonies to benefit a mother country
imperialism
material items for which people expect to pay
goods
Name some factors for economic growth
efficiency, full employment, economic stability
the study of national economics
macroeconomics
the worth that consumers attach to a good?
value
seek economic growth and stability rather than full employment
Conservatives
All people are said to be ___, or people who use goods.
consumers
What are the two entities that make the majority of the economic decisions in the free market?
private households and private businesses
the amount of a good that is bought at a certain price under certain conditions
demand
What term refers to a person that owns a share of some business that produces goods?
capitalist
Who was the French group of 18th-century economists who believed the market should be guided by “the rule of nature”?
physiocrats
a tool or resource used to produce or distribute goods; a good that is not produced for direct use by end consumers
capital
What French phrase, often connected with economics, means “let things alone”?
laissez-faire
What type of economy is directed by an “invisible hand”?
free market economy
What are taxes that governments apply only to imported goods?
tariffs
Who wrote The Wealth of Nations?
Adam Smith
refers to the quantity of a good for sale at a certain price under certain conditions
supply
What type of economy would a Communist-controlled country have?
command economy
mechanism through which people exchange goods
market
