Unit 5 Economics , Comparative Economics
Terms in this set (34)
The study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants
set of institutions, set of rules and beliefs allow/ organized human interactions relationships.
Not having enough resources to produce all of the things we would like to have (want). LIMITED RESOURCES Human Capital, Natural Resources, & Capital Goods
Capitalism, Socialism, communism
The cost of the next best alternative use of time and money when choosing to do one thing rather than another.
Ex: What are you giving up to be at school?
Economic system with predominantly private ownership of the means of production
Is a particular set of social institutions which deals with the production, distribution, and consumption of goods and services in a particular society.
4 Systems: Traditional, Market, Command and Mixed.
a French concept taken by Marx and Engels as the ultimate idea of collectivism.
What is 'Communism'
A political and economic ideology based on communal ownership and the absence of class.
Pure Market Economy
An system where supply & demand dictate economic decisions in a free enterprise with no government involvement.
State ownership of the means of production, ownership is predominantly by the central government or by local government.
Economic term where government should not interfere in the marketplace.
means that there are many buyers and sellers with free entry and exit. Homogeneous goods and services, and no one can control the market price.
A system in which private citizens own most; if not all the means of production and decide how to use them within limits.
the view that there should be minimal government economic intervention
Economic system in which individuals and businesses are allowed to compete for profit with minimum government interference.
a single seller in a market. Monopoly power arises when firms are able to raise prices and not lose all their customers, a source of inefficiency
Capitalist, owns the means of production and exploits the working class
Law of Demand
When price goes up, demand goes down. When prices goes down, demand goes up.
the working class, born into capitalist society
economic system in which individuals decide for themselves what to produce and sell
Seen as the Father of Capitalism. Published The Wealth of Nations in 1776.
Law of Supply
When price goes up, supply goes up. When price goes down, supply goes down.
Father of Communism. Wrote Communist Manifesto. Command Economy
The point where supply and demand meet to form the perfect price for both consumers and producers.
A sole provider of a good or service
Ex: Medical Care, Utilities
The amount of goods available
Consumer willingness and ability to buy products
Law of Supply and Demand
When demand goes up, supply goes down; when supply goes up, demand goes down.
A person who starts up and takes on the risk of a business
Is alternating periods of growth and decline in the economy.
Economic system that allows individuals to own, operate, and profit from their own business.
Gross Domestic Product
The total value, in dollars, of all FINAL goods and services produced within a nation each year. GDP.
Factors of Production
Land, Labor, Capital
A decline in the value of money/currency
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