Test 1 Economics Chapter 1-3 Flashcards
Greek word for economics
“House Law”
The Pilgrims came on what year?
1620
The comutal did not work because they lack
Incentives
Study of national and international economies and how these major economies are affected by large-scale choices and public policies
Macroeconomics
Seek to show the relationships among the various components of an economy
Economic model
A tangible item that people want and for which they will pay
Good
Intangible goods produced by labor for which people expect to pay
Service
The human desire to have and use a certain good
Want
A mechanism that allows people to exchange goods
Market
A very large number of people to whom very large quantities of products are sold
Mass market
The quantity of a good for sale at a certain price under certain conditions or simply the amount of a good that is produced
Supply
The amount of a good that is bought at a certain price under certain conditions
Demand
First thing to understand about economics
All things has to be worked for
Every person is a…
Consumer
Some people are
Producers
All producers are
Consumers
Is there a limit to the supply of goods?
Yes
What limits the availability of goods?
Cost
Are there always enough goods for everyone?
No, not always
A necessity, something it would be difficult to do without
Need
For those goods we need must we are willing to do what?
To pay more
Are all needs wants?
Yes
Are all wants needs?
No
Another term for capital good
Investment good
Things produced for direct use by consumers
Consumer goods
The industrial skills and scientific methods that make possible efficient production
Technology
The worth that consumers apply to something
Value
What 2 things determine value?
Scarcity and utility
Who solved the Diamond-Water Paradox?
Carl Menger
Carl Menger is the founder of what school of economics?
Austrian
Karl Marx the value of something is based upon what?
The labor
What do we look for economic growth?
(1) Efficiency
(2) Increase real wages
(3) Full employment
(4)Consistency
Same job, paid different wages, legally what might that be the case?
Experience
More responsibilities
Different region
Credentials
What does conservatives consider more important in economy?
Economic growth over equality
What does mercantilists believe?
Colonies exist for the good of the mother countries
The stablishment of colonies and extensive territories created to benefit their mother countries
Imperialism
Mercantilist believe that the wealth is based upon what?
Gold and silver
The difference in value of the goods that a country sells abroad compared to those it purchases from other countries
Trade balance
Taxes that governments apply only to imported goods
Tariffs
What does “laissez-faire”
“Hands off”
Founder of modern economics
Adam Smith
Economic success, or the condition of enjoying many goods, including services
Prosperity
The value of all the things that people own
Wealth
Advantage of nuclear energy
Very efficient
Clean
Disadvantage of nuclear energy
Expensive
Productive
One of America’s early “Captains of industry”
E I Du pont
Basic components of capitalism
Page 43, property
