Economy
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Created by:
cwlindauer on April 25, 2011
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43 terms
Terms | Definitions |
|---|---|
 Scarcity | not having enough resources to produce all the things we would like to have |
| Resource | the money, people, and materials available to accomplish a community's goals |
| Productive Resources | the inputs used to produce the goods and services that people want |
| Labor | nation's workforce and human resources |
| Capital | previously manufactured goods used to make other goods and services |
| Entrepreneur | individual who starts a new business, introduces a new product, and improves a management technique |
| Supply | the amount of goods and services that producers are able and willing to sell at various prices during a specified time period |
| Demand | the desire, willingness, and ability to buy a good or service |
| Profit | the money a business receives for its products or services over and above its costs |
| Consumer | someone who buys a good or service |
| Opportunity cost | the cost of the nest best use of time and money when choosing to do one thing or another |
| Trade off | the alternative you face if you decide to do one thing rather than another |
| Business cycle | alternating periods of growth and decline that the economy goes through |
| Monetary policy | policy that involves changing the rate of growth of the money supply in circulation in order to affect the cost and availability of credit |
| Fiscal policy | the federal government's use of spending and taxation policies to affect overall business activity |
| Recession | the state of the economy declines |
| Depression | a long-term economic state characterized by unemployment and low prices and low levels of trade and investment |
| Inflation | sustained increase in the general level of prices |
| Deflation | a contraction of economic activity resulting in a decline of prices |
| Capitalism | a system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits |
| Free enterprise | economic system which individuals and businesses are allowed to compete for profit with a minimum of government interference |
| Market economy | system in which individuals own the factors of production and make economic decisions through free interaction |
| Command economy | an economic system in which the major economic decisions are made by the central government |
| Traditional economy | an economic system in which the decisions of what, how, and for whom to produce are based on custom or habit |
| Circular Flow | A model that shows the process of exchange among consumers, businesses, and government |
| Progressive Income Tax | a tax that takes a larger percentage of higher incomes than lower incomes |
| Regressive | adjusted so that the rate decreases as the amount increases |
| Excise | a tax that is measured by the amount of business done (not on property or income from real estate) |
| Federal Reserve | controls America's money supply, by controlling the interest rates of banks, also America's central bank |
| Standard of Living | the material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied |
| Gross Domestic Product (GDP) | total dollar value of all final goods and services produced in a country during a single year |
| Medicare | government program that provides health care for the aged (over 65) |
| Social Security | federal program that provides monthly payments to people who are retired or unable to work |
| Welfare | the health, prosperity, and happiness of the members of a community |
| Land | natural resources on, above, or below Earth's surface |
| Medicaid | health program that provides health care for people with low incomes (less than $20,000), people in poverty |
| Basic Economic Questions | what to produce, how to produce, for whom to produce |
| Economics | the study of how we make decisions in a world in which resources are limited; the study of how tings are made, bought, sold, and used |
| Economic System | a country's ways of producing the thing the people need and want |
| Microeconomics | study of behavior and decision making of businesses and individuals |
| Macroeconomics | the big picture; the study of societies/ governments/ industries |
| Factors of Production | Capital, Entrepreneur, Land, Labor |
| Minimum Wage | the lowest wage that an employer is allowed to pay |
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