Vocab

Question 1

factor of production

Answer 1

the inputs that are used in the production of goods or services in order to make an economic profit
includes: labor, capital, land, and entreprenuership

Question 2

rationing

Answer 2

allow each person to have only a fixed amount of (a particular commodity)

Question 3

economic questions

Answer 3

what goods to produce? How will they be produced? For whom will the goods be produced?

Question 4

competition

Answer 4

rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion

Question 5

renewable/nonrenewable sources

Answer 5

nonrenewable: resource of economic value that cannot be readily replaced by natural means on a level equal to its consumption. Most fossil fuels, such as oil, natural gas and coal are considered nonrenewable resources in that their use is not sustainable because their formation takes billions of years
renewable: a substance of economic value that can be replaced or replenished in the same or less amount of time as it takes to draw the supply down.

Question 6

stocks

Answer 6

a claim on the assets of a corporation that gives the purchaser a share of the corporation

Question 7

Adam Smith

Answer 7

supported free-enterprise: individuals own most if not all the resources and control their use
he believed people were self-interested and through that would help others (first)

Question 8

Karl MArx

Answer 8

came up with the labor theory, and leaned towards communism/socialism: where government controls and probably owns the resourced

Question 9

Value of labor

Answer 9

argues that the economic value of a good or service is determined by the total amount of socially necessary labor required to produce it, rather than by the use or pleasure its owner gets from it

Question 10

Entrepreneurs

Answer 10

the special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things

Question 11

Marginal Thinking

Answer 11

requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost

Question 12

DOW

Answer 12

most popular, widely cited indicator of day-to-day stock market activity. the DJIA is a weighted avg of 30 widely traded stocks on the New York Stock Exchange

Question 13

land

Answer 13

all natural resources found in nature: water, minerals, animals, forests…

Question 14

labor

Answer 14

physical and mental talents that people contribute to the production of goods and services

Question 15

capital

Answer 15

produced good that can be used as resources for further production

Question 16

municipal bond

Answer 16

issued by state and local governmnets

Question 17

US treasury bills, notes, and bonds

Answer 17

when the federal government wants to borrow funds – the difference between the three is maturity times

Question 18

corporate bond

Answer 18

issued by a private corporation (typical with a $10,000 face value)

Question 19

inflation-indexed treasury bonds

Answer 19

they give back money in accordance to inflation

Question 20

traditional economy

Answer 20

answers the questions based on customs, skills, and cultural beliefs