Create an account
the process of starting, organizing, managing, and assuming the responsibility for a business
Four Basic Economic Questions
What to produce, how to produce, how much to produce, and for whom to produce
general worker who can perform any job that requires no special knowledge or skill
productive resources consisting of human-made materials needed to produce goods and services (including buildings, machinery, equipment and tools)
Law of Diminishing Return
Economic Law that at some point increasing one factor of production only will decrease productivity
Economic system in which businesses are privately owned and operated for profit and where free markets coordinate most economic activity
Written by Karl Marx and Friedrich Engels, arguing that the economy would be fair only if workers controlled production
Changes in government spending or tax policy in response to a period of high unemployment
economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
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
policy based on the idea that government should play as small a role as possible in the economy
Questions are answered by households and business through a system of freely operating markets
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.
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together