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37 Cards in this Set
- Front
- Back
economics
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the study of how things are made, bought, sold, and used.
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goods
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anything that can be manufactured or grown
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services
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something done for others in exchange for money
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resources
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anything used to produce a good or a service
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consumers
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people who buy or use a good/service.
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supply
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amount of a good or a service available to consumers
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demand
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the amount of a good or service that consumers are willing to buy
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capital
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money needed to produce goods and services
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division of labor
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when each worker does one type of job
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gross income
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total amount of money made
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net income
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amount of money left after expenses (profit)
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entrepreneur
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a person who starts a new business (risk taker)
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opportunity cost
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what you give up when you make one choice over another (trade off)
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marketing
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includes advertising, shipping, storing, and selling of goods
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wholesale
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buying large quantities of goods at a lower price
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retail
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buying individual items at higher prices
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traditional economy
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an economy in which people supply the goods they need by methods passed down from ancestors
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free market economy
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privately-owned prodution, supply and demand, competition, and profit motive. (Adam Smith)
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centrally-planned (command) economy
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government controls production/distribution; no competition, not run for profit (Ex: comunist) (Karl Marx)
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mixed economy
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where individuals and government are partners; most means of production are privately-owned but government can guide and regulate economy
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capitalism
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people put money (capital) into businesses and hope for a profit
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recession
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a slowdown of economic activity
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depression
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a severe recession
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Gross Domestic Product
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total value (in dollars) of all goods and services produced in the U.S. each year
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standard of living
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quality of life based on amount of goods/services one can purchase plus amount of leisure time
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inflation
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general rise in prices of most goods and services
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deficit
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when the government spends more money than it makes
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national debt
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the total amount the government owes on money it has borrowed
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Federal Reserve System (the Fed)
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the central bank of the United States; twelve federal reserve districts, each with one F.R. bank; supplies banks with new money, supervises member banks, provides check-clearing services, and affects interest rates
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profit
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the income that remains after a business has paid off its expenses, taxes, and other costs
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stockholder (shareholder)
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a person who buys shares of ownership in a corporation
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dividend
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a share of the profit paid to the stockholders of a corporation
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capital goods
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the buildings and machines needed to make goods and to provide services
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sole proprietorship
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a business owned by one person
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partnership
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a business owned by two or more people
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corporation
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a large business that has many owners
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credit union
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a non-profit "bank" that offers savings accounts and provides loans to qualified members
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