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Civics Goal 7 Quiz

STUDY
PLAY
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.