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30 Cards in this Set
- Front
- Back
What is a need?
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A need is something essential for survival such as food or medical care
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What is the "problem of limits"
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It's when no one can have an endless supply of anything
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What is "scarcity"?
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Scarcity is when limited amount of goods and services are available to meet unlimited wants
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What is economics?
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Economics is the study of how people seek to satisfy their needs and wants by making choices
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What is an entrepreneur?
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they are people who decide how to combine resources to create new goals and services
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What is land?
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refers to all natural resources used to produce goods and services
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What is labor?
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is the effort people devote to tasks for which they are paid
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What is "guns and butter"?
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common choices facing government: choices between spending money on military or domestic needs
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What is opportunity costs?
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The most desirable alternative somebody gives up as the result of a decision
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What is "thinking at the margin"?
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deciding whether how much more or less to do
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What is marginal cost?
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Is the extra cost of adding one unit
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What does a production possibilities curve do?
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is a graph that shows alternative ways to use an economy's productive resources
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What is efficiency?
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it is the use of resources in such a way as to maximize the outputs of goods and services
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What is under-utilization?
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the use of fewer resources than an economy is capable of using
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What are 3 key questions society must answer?
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What goods and services should be produced?
How should these goods and services be produced? Who consumes these goods and services? |
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What is profit?
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profit is the amount of money a business receives in excess of it's expenses
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What is a safety net?
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sets of programs to protect people who face unfavorable economic conditions such as layoffs, injuries, or natural disasters
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What is a "traditional economy"?
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an economic system that relies on habit, custom, or ritual to decide the three key economic questions
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What is specialization?
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its the concentration of the productive efforts of individuals and businesses on a limited number of activities
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What is a "product market economy"?
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is the arena of exchange in which households purchase goods and services from firms
Capitalism, Free market |
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What is an incentive?
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is the hope of reward or fear of penalty that encourages a person to behave in a certain way
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What is competition?
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economists call this struggle among producers for the dollars of consumers
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What is consumer sovereignty?
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consumers have the power to decide what gets produces
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What is a "centrally planned economy"?
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it's the government, rather than individual producers andconsumers,answer the key economic questions
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What is authoritarian government?
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they're governments that limit individual freedoms and require strict obedience from their citizens
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What nation was a centrally planned economy?
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Communist countries ex. Russia, China
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What type of economy does the US have?
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Mixed economy
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What is laissez faire?
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It's a doctrine in which the government shouldn't intervene w/ the market
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What is a "mixed economy"?
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It's a market-based economic system in which the government is involved to some extent
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What does a circular flow model show?
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the graph shows how much money flow through the firms, government and households
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