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44 Cards in this Set
- Front
- Back
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economics |
the allocation of scarce resources |
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scarcity |
a limited amount of resources for an unlimited amount of time |
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economic good |
item that's desired |
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economic service |
someone performing a task |
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economic want |
luxury |
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economic need |
essential for survival |
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paradox of values |
widely accepted social principles behave in an opposite manner (ex. although water is more useful in terms of survival than diamonds, diamonds command a higher price in the market) |
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land |
natural resources |
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labor |
effort people devote to do taks they are paid to do |
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human capital |
college education trade experience job experience |
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physical capital |
buildings equipment tools |
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technology |
can increase a nation's efficiency |
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many governments invest in |
technology, education, and training |
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entrepreneurship |
turn scarce resources into goods and services take risk for profits develop original ideas, start businesses, create new industries, and fuel economic growth |
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capital good |
goods that are used by one business to help another business make consumer goods (ie buildings, machinery, tools) |
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consumer good |
used by consumers and have no future productive use (ie clothing food and jewelry) |
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opportunity cost |
the next best choice |
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production possibility curve |
signify full potential of all actors of production and symbolize opp cost |
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if you go right you ____ if you go left you ____ |
grow lose |
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freedom |
you can make different choices |
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efficiency |
the max output |
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equity |
fairness |
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security |
everyone's needs being met |
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stability |
an absence of fluctuation |
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growth |
amount of goods and services produced increases overtime |
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opportunity |
the ability to acquire wealth |
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traditional system |
you do what your parents did ran by customs and beliefs |
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current and past examples of traditional economy |
current: many third world countries, tribes past: Mesopotamia, ancient civilization |
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advantages (2) and disadvantages (2) of traditional economy |
(adv) needs are met not destructive
(dis) difficult to change lower standard of living |
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free market economy |
no govt intervention, private enterprise, freedom, competition. decisions based off of demands/wants |
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free market past (1) and current (4) examples |
n/a us Japan Taiwan uk |
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free market advantages (3) and disadvantages (2) |
(adv) efficiency innovation competition creates growth (dis) takes advantage of people who can't compete (elderly, children, handicapped) creates societal gaps |
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centrally planned/command economy |
government controlled, they decide what will be produced |
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command economy past (1) and current (3) examples |
past Soviet union current North Korea Cuba vietnam |
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adv (3) and dis (4) of command economy |
adv: resources are quick projects happen fast greater God of society is the focus dis: needs are overlooked for betterment of economy no options black market is huge unbalanced |
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mixed economy |
mix between all markets - regulations and govt help steer private businesses |
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mixed economy past and current examples |
no past every country |
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adv (3) and dis (2) of mixed economy |
adv: service are met (unemployment, welfare) prices are low consumer choice dis: huge taxes governments and businesses clash |
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democratic socialism |
a democracy and a socially controlled economy working together |
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authoritarian socialism |
support of socialist economics while rejecting political libertarianism |
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who makes choices in free enterprise |
consumers |
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true or false: services are not tangible |
true |
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Adam Smith says the invisible hand that directs economy is |
prices |
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minimum wage fits what term |
economic equity |
