Civics Goal 7 Quiz

Created by jeanpaulacruz 

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Capital

factor of production used by labor in making products

Economics

the study of how people seek to satisfy their needs and wants by making choices

Entrepreneurship

the process of starting, organizing, managing, and assuming the responsibility for a business

Factors of Production

What must be combined to produce goods and serives

Four Basic Economic Questions

What to produce, how to produce, how much to produce, and for whom to produce

Labor

Any form of human effort exerted in production

Land/Natural Resources

Productive resources that are provided by nature

Need

A basic requirement for survival

Want

A way of expressing or communicating a need

Consumer

a person who uses goods or services

Goods

tangible products that we use to satisfy our wants and needs

Opportunity Cost

The next best option that you didn't get. The one you gave up

Producer

someone who manufactures something

Wages/Salary

money earned for doing work

Services

Intangible things that satisfy human wants and needs

Fixed Costs

The costs or expenses that are the same no matter how many units of a good are produced

Incentives

Encourages you to purchase a good or service

Total Costs

Fixed Costs + Variable

Tradeoffs

Meaning that to achieve one we must sacrifice another.

Variable Costs

change generally depends on output

Assembly Line

Production method that breaks down a complex job into a series of smaller tasks

Automation

the use of machinery in place of human labor

Blue Collar

Worker who do jobs that involve manual labor

Human Capital

Skills, training, and knowledge of workers

Innovation

Invention and technological advances that increase economic activity

Mass Production

process of making large quantities of a product quickly and cheaply

Production

the creation of value or wealth by producing goods and services

Skilled Workers

a trained worker who has special skills for a job

Specialization

the development of skills in a specific kind of work

Unskilled Workers

general worker who can perform any job that requires no special knowledge or skill

White Collar

Workers who typically work for management in offices

Capital Goods

productive resources consisting of human-made materials needed to produce goods and services (including buildings, machinery, equipment and tools)

Consumer Goods

goods (as food or clothing) intended for direct use or consumption

Human Resources

People who work to produce goods and services

Law of Diminishing Return

Economic Law that at some point increasing one factor of production only will decrease productivity

Produces Price Index (PPI)

Monthly report on the costs of production to procedures

Productive Resources

Resources that can be used to produce other things.

Capitalism

Economic system in which businesses are privately owned and operated for profit and where free markets coordinate most economic activity

Command Economy

An economic system in which the government controls production.

Communism

political system in which the government owns and operates all factors of production

Communist Manifesto

Written by Karl Marx and Friedrich Engels, arguing that the economy would be fair only if workers controlled production

Deficit Spending

when a government spends more money than it takes in

Fiscal Policy

Changes in government spending or tax policy in response to a period of high unemployment

Free Enterprise

economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference

Invisible Hand

Concept in a market economy where individuals are allowed to pursue their own self-interests w/out interference by government, the actions would do what is best for society

Laissez-faire

policy based on the idea that government should play as small a role as possible in the economy

Market

the world of commercial activity where goods and services are bought and sold

Market Economy

Questions are answered by households and business through a system of freely operating markets

Mixed Economy

Has characteristics of both a command and a market economy

Profit Motive

the drive for people to make money

Socialism

Government owns utilities and major businesses but permits private ownership of some business

The Keynesian Theory

government sponsered programs should increase jobs and stimulate business activity.

Wealth of Nations

Adam Smith's book that argued that the market should regulate itself.

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