40 terms

Economics PPT #1, 2, and 3 Terms and Info

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Terms in this set (...)

Anything that has value that can be touched
Goods
Job done for money
Services
The way goods and services are produced, bought, and sold
Economy
How much is available
Supply
How much people want
Demand
when there is not enough of something to satisfy how much everyone wants of it.
Scarcity
the principle that suppliers will normally offer more for sale at high prices and less at lower prices
Law of Supply
the quantity demanded of a good or service varies inversely with its price
Law of Demand
the tools, equipment, machinery, and factories used in the production of goods and services
Capital
people with all of their abilities, efforts, and skills
Labor
The process of creating goods and services
Production
things you would like to have but are not necessary for survival
Wants
something like air, food, or shelter that is necessary for survival
Need
a situation in which a good or service is unavailable; a temporary situation
Shortage
economics
the science that deals with the production, allocation, and use of goods and services.
economics began with
Greeks (Plato and Aristotle) and later Romans (Cicero and Virgil)
Medieval times economics
Feudalism (Kings, Lords, nobles, peasants, serfs)
Mercantilism economics
16th, 17th, 18th century economics
laissez faire
The idea that government should refrain from interfering in economic affairs.
Microeconomics
the study of the workings of the markets on individuals or groups within the economic system as a whole.
Macroeconomics
the study of the entire world economic system and ideas
socialism/communism
the government has control over all businesses (China, Cuba, North Korea)
Capitalism
private or corporate ownership of businesses (United States, Canada, Great Britain)
distribution
marketing of goods
consumer goods
goods satisfying human needs such as food or clothing (pork bellies, such as you might find on a bacon and lettuce and tomato sandwich)
capital goods
machinery used in the production of producer goods
producer goods
raw materials and goods used to make consumer goods
industry
different categories of businesses that employ millions and supply goods and services to the world
interdependence
how one industry depends on another
commerce
trade between states or nations
exports
Goods and Services sold to other countries
imports
goods and services purchased from other countries
trade deficit
situation in which a country imports more than it exports
trade surplus
situation in which a country exports more than it imports
banking
businesses that deal with money and credit
credit
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
interest
payment to a credit card company or bank for lending you money
money
anything used in exchange for goods and services
stocks
shares of ownership in a company
shareholder
A person who invests in a corporation by buying stock and is a partial owner
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