Final - 1st 30 Flashcards

1
Q

The profit motive is the

A

incentive to improve material well-being and is responsible for the growth of the free enterprise system.

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2
Q

The factors of production include

A

land, labor, capital, entrepreneur

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3
Q

An entrepreneur is

A

the person who organizes and manages land, labor, and capital.

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4
Q

Consumers determine

A

what to produce.

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5
Q

Consumer sovereignty means the…

A

consumer is the ruler of the market

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6
Q

Some states protect workers from

A

layoffs and illness by setting up unemployment compensation programs

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7
Q

The government has become a

A

protector, provider against harm, regulator and consumer

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8
Q

Social Security is a

A

federal program of disability and retirement benefits that covers most working people

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9
Q

Inflation is a rise in

A

the general level of crisis

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10
Q

Inflation is a general rise in

A

prices overtime

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11
Q

A modified free enterprise economy is a

A

market economy in which people freely carry on economic affairs but are subject to some government regulation

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12
Q

Supply is the

A

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.

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13
Q

Law of Supply

A

The principle that more will be offered for sale at higher prices than lower prices.

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14
Q

Quantity Supplied

A

The amount that a single producer or all producers bring to market at any given price. It’s a point on the supply curve.

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15
Q

Subsidy

A

A government payment to encourage or protect a certain economic activity.

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16
Q

Elastic Supply

A

When the change in price causes a proportionally larger change in quantity supplied.

17
Q

Total Product

A

The entirety of output or production by a firm.

18
Q

Periodic Marginal Analysis

A

best helps a firm establish profit maximizing quantity output.

19
Q

Fixed Cost

A

Are costs that an organization has even if there is little or no activity. It’s sometimes called overhead.

20
Q

Total Revenue

A

is all the revenue that a business receives. If revenue from an item drops they produce less.

21
Q

When prices are higher
its an

A

incentive to produce more.

22
Q

Under perfect competition

A

Supply and demand sets the equilibrium price

23
Q

Monopoly

A

Is a market structure characterized by a single producer in a market.

24
Q

The opposite of pure competition

A

Monopoly

25
Q

market failure

A

Occurs whenever a flaw in the market system prevents an efficient allocation of resources. There are 5 main causes including not enough competition.

26
Q

What is Laissez-Faire?

A

The French term that means “allow them to do” was the philosophy that limited government in protecting property and enforcing contracts.

27
Q

In a modified free enterprise system,

A

government action includes dealing with pollution, laws, taxes, and subsidies. Almost everything is affective.

28
Q

To restore completion several laws were passed including the

A

Sherman Antitrust Act, the Clayton Antitrust act and the federal trait commission was set up.

29
Q

A mortgage is a

A

legal document that pledges ownership of a home to lender as security for repayment of barrowed money

30
Q

A trust is an

A

illegal combination of corporations or companies organize to suppress competition.

31
Q

Foreclosure is the situation in which a

A

lender reclaims a home because that barrower has defaulted on the previously agreed upon payments