economics test 1 Flashcards
mercantilism
economy growing from the top down. and government encourages and assists businessmen in establishing colonial outposts
oikonomos
the word economics comes from and means steward
tariffs
tax on imported goods
goods
tangible items companies produce
services
intangible duties that people perform to pay
cost benefit analysis
determining the cost and the benefit of taking a particular step before you take it to determine if the benefit outweighs the cost
margin
small step that makes a big difference in the action being taken “the next one”
opportunity cost
the real cost of doing or making one thing includes the cost of not doing or making something else.
supply-side economics
Ronald Regan- economic growth can be best achieved by increasing the supply of goods and services through policies like lower taxes and free trade
monasteries
people called monks gathered in monasteries to practice living isolated and only prayer and fasting
incentive
a benefit that motivates an action (most common is reduction in price)
microeconomics
small pictures. how individual households and companies make decisions and how buyers and sellers interact in the market
macroeconomics
big picture, economy as a whole. EX. GDP, rate of inflation
When was the Federal Reserve system established. Who established it?
1913 and congress
How did the first believers in Jerusalem view their possessions
property
how is money used in the US
as an agreed upon medium of exchange
GDP
gross domestic product
what was the primary standard of wealth in the English colonies of america
land
when did medicare begin?
1960s
what waterway enabled new york city to become America’s financial center
Erie canal
what source of credit encouraged Americans to spend more?
credit cards
what was the effect of the embargo act?
serious loss of trade
what was the first national bank of the united states called?
Bank of the United States
what is a bond?
Money individuals loan to an entity ( often the government)
what was the dot com boom
Made it possible for people to become millionaires quickly in the 1990’s
what does investment capitalism mean?
A type of business in which people build large enterprises that do not make money themselves, but invest huge sums of money in companies that do ( involves investing money to make a profit)
what was the first business in the US that grew greatly after the civil war
railroads
what cotton invention spurred economic growth in the south
cotton gin
according to weber, what 4 prospects of protestant thought influenced the development of capitalism
the idea of seeing one’s vocation in life, not just service within the Church, as a calling
2. the belief that discipline and hard work, which led to making money, were legitimate ways to honor God and to fulfill one’s calling
3. the rejection of personal luxury and to invest their profits in further growth of their businesses
4. the worth of the individual, which led to greater economic activity
