Final - 1st 30 Flashcards
The profit motive is the
incentive to improve material well-being and is responsible for the growth of the free enterprise system.
The factors of production include
land, labor, capital, entrepreneur
An entrepreneur is
the person who organizes and manages land, labor, and capital.
Consumers determine
what to produce.
Consumer sovereignty means the…
consumer is the ruler of the market
Some states protect workers from
layoffs and illness by setting up unemployment compensation programs
The government has become a
protector, provider against harm, regulator and consumer
Social Security is a
federal program of disability and retirement benefits that covers most working people
Inflation is a rise in
the general level of crisis
Inflation is a general rise in
prices overtime
A modified free enterprise economy is a
market economy in which people freely carry on economic affairs but are subject to some government regulation
Supply is the
amount of a product that would be produced, grown, or acquired and offered or sale at all possible prices that could prevail in the market.
Law of Supply
The principle that more will be offered for sale at higher prices than lower prices.
Quantity Supplied
The amount that a single producer or all producers bring to market at any given price. It’s a point on the supply curve.
Subsidy
A government payment to encourage or protect a certain economic activity.
Elastic Supply
When the change in price causes a proportionally larger change in quantity supplied.
Total Product
The entirety of output or production by a firm.
Periodic Marginal Analysis
best helps a firm establish profit maximizing quantity output.
Fixed Cost
Are costs that an organization has even if there is little or no activity. It’s sometimes called overhead.
Total Revenue
is all the revenue that a business receives. If revenue from an item drops they produce less.
When prices are higher
its an
incentive to produce more.
Under perfect competition
Supply and demand sets the equilibrium price
Monopoly
Is a market structure characterized by a single producer in a market.
The opposite of pure competition
Monopoly
market failure
Occurs whenever a flaw in the market system prevents an efficient allocation of resources. There are 5 main causes including not enough competition.
What is Laissez-Faire?
The French term that means “allow them to do” was the philosophy that limited government in protecting property and enforcing contracts.
In a modified free enterprise system,
government action includes dealing with pollution, laws, taxes, and subsidies. Almost everything is affective.
To restore completion several laws were passed including the
Sherman Antitrust Act, the Clayton Antitrust act and the federal trait commission was set up.
A mortgage is a
legal document that pledges ownership of a home to lender as security for repayment of barrowed money
A trust is an
illegal combination of corporations or companies organize to suppress competition.
Foreclosure is the situation in which a
lender reclaims a home because that barrower has defaulted on the previously agreed upon payments
