Unit 6/7 Economics Flashcards
What is the study of Economics
The study of how people use limited resources in the market place
what is scarcity
lack of a resource
what is choice
selecting an item or action from a set of alternatives
what is the marketplace
where goods and services are bought and sold
what is opportunity cost
what is given up when a choice is made
what is a natural rescource
found in nature
what is a human resource
provide the labor (people who make stuff)
what is capital resources
things owned by the business
what is entrepreneurship resource
people who take the risk to start a business
what is production
creating a good or service
what is consumption
the purchasing of a good or service
in a traditional economy decisions are based on what
tradition and custom
in a free market economy decisions are made by whom
individuals and business owners
in free market economy business make decisions based off what
profit (making money)
in a free market economy what helps to create better products at lower prices
competition
what is consumer sovereignty
control is in the hands of the consumer (the buyer)
in a command economy who makes decisions
government
in which economic system has the least amount of consumer choice
command economy (communism)
in a mixed economy when can the government intervene in business
benefits outweigh the potential cost
what is private property
when businesses and individuals can own land and buildings
what is supply
the amount of a good or service
what is demand
the amount consumers are willing to buy
what does the interaction of supply and demand determine
price
what is equilibrium price
the price where demand and supply meet
what is proprietorship
one owner taking all the risk and profits
what is a partnership
two or more owners share the risk and profits
corporation
business that is a legal person
which economic system has some private and some public (government) decision making
mixed
is a free market economy private or public?
private
Is a command economy private or public?
public
what is circular flow
when goods and services flow in one direction and money flows in the other direction
in circular flow, what are “households”
the consumer
in circular flow, what resources do “households” (consumers) have
labor, money, land
in circular flow, what do businesses use resources for
to make goods and services
in circular flow, what does the government use taxes from consumers and businesses for
public goods and services (roads)
who issues currency
the government
what is money
anything that can be used for payment or exchange
what are private financial institutions
banks and credit unions
how does the government get funds or goods and services
taxes, borrowed funds, fees, fines
what is income tax?
government tax on money your earn
what are the two types of state taxes
income and sales tax
what does the Consumer Safety Product Commission (CPSC) do
test and make sure products are safe to buy
what does the food and drug administration (FDA) do
make sure food and legal drugs are safe
what government agency defines safety procedures for the workplace
OSHA (Occupational Safety and Health Administration)
what government agency protects hiring practices from discrimination
equal opportunity employment commissions (EOEC)
what government agency protects the environment
environmental protection agency (EPA)
what is a monopoly
one business controls the production and distribution of one product
what is antitrust legislation
are laws that discourage monopolies
why is international trade beneficial to the US economy
- Increase our wealth
- obtain goods
- lower our costs
- sell to other countries
- create jobs
what is the benefit of advances in technology to the economy
lower the cost of production
what does the federal communication commision do
regulate TV, radio, etc… communications
what does the security exchange commision do
protect investors
what does the federal trade commision do
protect consumers from false advertising
what does the federal reserve system (The Fed)
regulate banks
