econ sec 1 and 2
Terms in this set (52)
human effort directed toward producing goods and services
previously manufactured goods used to make other goods and services
the study of how individuals and societies make choices about ways to use scarce resources to fulfill their needs and wants
advance in knowledge leading to new and improved goods and services and better ways of producing them
tangible objects that can satisfy people's wants or needs
Everything that exists is limited
the need to make choices arise
the basic problem of economics
the four factors of production are the resources of land, labor, capitol, and...
as an economic term, land refers to
the process of freely exchanging goods and services between buyers and sellers
system in which the government controls the factors of production and makes all decisions about their use
way in which a nation uses it resources to satisfy its people's needs and wants
system combining characteristics of more than one type of economy
system in which economic decisions are based on customs that have been handed down from generation to generation
All economic systems
must answer the same three basic questions
Almost all economic systems today are
who owns the factors of production and makes economic decisions in a market economy?
in a command economy, the factors of production are decided by
one advantage of traditional economy is
you known what is expected of you
amount left over after all the costs of production have been paid
rivalry among producers or sellers of similar goods and services to win more business
desire to make money that motivates people to produce goods and services
economic system in which private individuals own the factors of production
whatever is owned by individuals rather than by government
Since the 1800s, the role of government in the U.S has
which of the following describes a free-enterprise system?
individuals are free to own and control the factors of production
In a free-enterprise system, who makes the decisions about what should be produced?
what motivates people to establish new business or expand existing ones?
Competition forces business to
keep low prices
standard of living
material well-being of an individual, group, or nation measured by how well necessities and luxuries are satisfied
expansion of the economy to produce more goods, jobs, and wealth
wise use of available resources so as to obtain the greatest benefits possible
obligation of individuals in a free-enterprise system to function as productive members of society
the attempt to balance an economic policy so that everyone benefits fairly
the goal of economic freedom is to
allow each member of society to make choices
when the benefits of an economic action exceed the costs
economic efficiency increases
within a free-enterprise system, individuals have the right to
enter into any profession they choose
economic equity deals with the issue of
the goal of economic stability is to reduce extreme ups and downs in the
standard of living
system in which planning, when required , is undertaken by firms, individuals, and elected government representatives
term used by Karl Marx to refer to workers
system in which the entire economy is controlled by a central government
term used by Karl Marx for an ideal society in which no government is necessary
system in which the government controls only some areas of the economy
In american economy, who answers the basic economic questions of what, how, and for whom goods and services should be produced?
which of the following is a characteristic of capitalism?
socialism as an economic system
grew out of protests against the industrial revolution
which of the following is a characteristic of pure socialsm
most prices are set by the state
which of the following is a benefit of capitalism?
high rates of economic growth
it is easier to start your own business in a...
free enterprise system
the word "equity" means
pure socialism is characterized by
centralized economic planning and state ownership of the factors of production