Chapter 1 and 2 Vocab
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Created by:
BrittanyLewis_1 on January 9, 2012
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39 terms
Terms | Definitions |
|---|---|
 Economics | the study of the choices that individuals and societies make in the production, distribution, and consumption of goods |
| Economy | Any system for the production, distribution, and consumption of goods and services |
| Economists | Scholars of the production, distribution, and consumption of goods within an economy |
| Macroeconomics | study of national and international economies and how these major economies are affected by large-scale choices and public policies |
| Microeconomics | The study of specific components within a major economy and how the choices made by individuals, households, and businesses affect that economy |
| Economic models | Seek components of an economy |
| Economic forecast | seeks to help those making decisions to make wise choices, it's a prediction |
| Good | A tangible, or material, thing that people want and for which they will pay |
| Services | Intangible goods produced by labor for which people expect to pay |
| Want | The human desire to have and use a certain good |
| Market | Mechanism that allows people to exchange goods |
| Mass market | A very large number of people to whom very large quantities of products are sold |
| Supply | The quantity of a good for sale at a certain price under certain conditions or simply the amount of a good that is produced |
| Demand | The amount of a good that is bought at a certain price under certain conditions |
| Producers | Provide goods |
| Consumers | Use goods |
| Need | necessity, something you can't live without |
| Want | Desire, a longing, an appetite for something |
| Capital good | Anything used in the production of distribution of goods and services |
| Consumer goods | Things produced for direct use by consumers |
| Technology | The industrial skills and scientific methods that make possible efficient production |
| Value | The worth that consumers attach to it |
| Utility | Usefulness |
| Scarcity | Availability |
| Laws of economics | general rules of principles guiding the production, distribution, and consumption of goods |
| Mercantilism | system of economy based on the idea that you need to build up a nation's treasury (precious metals) |
| Trade balance | difference in the value of goods that a country sells abroad compared to those it purchases from other countries |
| tarrifs | taxes that governments apply only to imported goods |
| Imperialism | the establishment of colonies and extensive territories created to benefit their mother countries |
| Physiocrats | favored a "natural" economy opposed to the "artificial" created by mercantilism |
| "laissez-faire" | says a nation's economy is best left to itself and should not be stifled by governmental regulation |
| Classical economics | the theories developed by economists of the 19th and early 20th centuries that stated that the free market was the best possible economic system |
| Adam Smith | founder of modern economics |
| The Wealth of Nations | book written by Adam Smith accurately describing the laws of economics |
| Division of labor | the separation of work to be performed into individualized tasks |
| Specialization | allowed the production of goods by people doing the jobs they did best |
| Prosperity | economic success, or the condition of enjoying many goods including services |
| Wealth | the value of all things that people own |
| Labor | human activity which results in the creation of goods and services |
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