SS ECONOMICS EXAM
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Created by:
kaliekaimann on May 19, 2012
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36 terms
Terms | Definitions |
|---|---|
 Economics | The study of choices that people make to satisfy their needs and wants. |
| Macroeconomics | deals with entire economy |
| Natural Resources | items provided by nature that can be used to produce goods and provide services |
| Human Resources | any human effort exerted during production is considered a human resource |
| Capital Resources | the manufactured materials used to create products |
| Entrepreneurship | person who attempts to start a new business or introduce a new product, risking economic failure in return for the possibility of financial gain |
| Scarcity | combination of limited resources and unlimited wants |
| Exchange | process in which producers and consumers agree to provide one type of it in return for another |
| Barter | products are traded directly for other products |
| Money | anything that everyone is willing to accept in exchange for goods |
| Value | in order to avoid the problems of barter, goods and services are assigned this; can be expressed as an amount of money, or a price |
| Self-Sufficiency | when people/society can fulfill all of their needa without outside assistance. |
| Interdependence | events or developments in one region of the world or sector of the economy influence events/developments in other regions/sectors |
| Command Economy | relies on government officials to answer the 3 economic questions |
| Market Economy | individuals answer the 3 basic economic questions; gov. has no say in what, how, for whom goods are produces, & the factors of production are owned by individuals. |
| Incentive | something that encourages you to behave in a particular way |
| Communism | mixed economies that are closest to the pure command model; also known as authoritarian socialism |
| Capitalism | individuals own the factors of production & answer eco. Questions. |
| Private Property | goods that are owned by individuals and by businesses rather than by government |
| Contract | agreements to buy and sell goods and services |
| Product Market | represents all of the exchanges of goods and services in the economy |
| Economic Efficiency | goal has to do with efforts to make the best use of scarce resources |
| Economic Security | goal refers to a nation's effort to protects its members from situations that that would harm the economic well-being of individual citizens and the nation as a whole |
| Traditional Economy | based on custom and tradition |
| Self-Interest | the impulse that encourages people to fulfill their needs and wants |
| Mixed Economy | combines the elements of traditional, market, and command economic models to answer 3 basic economic questions. |
| Authoritarian Socialism | mixed economies that are closest to the pure command model; communism |
| Democratic Socialism | type of mixed economy in which the government owns some of the factors of production |
| Competition | the economic rivalry that exists among businesses selling the same or similar products |
| Price Stability | this is achieved when the overall price level of goods and services available in the economy is relatively constant |
| Standard of Living | refers to people's economic well-being. |
| 3 Economic Questions | What to produce? How to produce it? For whom to produce? |
| Productivity | level of output that results from a given level of input |
| Trade-Off | more of one thing necessarily means less of something else; one good is sacrificed for another |
| Opportunity Cost | what you have to give up to get what you wanted. The most highly valued opportunity or alternative forfeited when a choice is made. |
| Credit | allows consumers to use items before completing payment for merchandise |
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