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economics quiz 1
Terms in this set (22)
- the study of people and why the do the things they do
- Economics is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work
what is ? no value judgement
what ought to be ? value judgement
Economic issues which address the behavior and decision making of small units, such as buisness and individuals
invisible hand economics
centered on the belief that human beings are naturally motivated by self-interest and, when they are not interfered with in their economic activities, a balanced system of production and exchange based on mutual benefit emerges.
claims that an economic system should be free from government intervention or moderation, and be driven only by the market forces.
- known as the Father of Economics, established the first modern economic theory
- wrote wealth of nations
John Maynard Keynes
An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.
Friedrich A. Hayek
When government interferes it results in people acting in ways that are not sustainable, which ultimately leads to booms and busts.
The economy is a self-regulating market system that automatically satisfies the economic needs of the populace.
What goods and services should be produced?
unlimited wants vs. limited sources leads to
An economic system in which decisions about production and consumption are made by a powerful ruler.
An economic system in which economic decisions are left up to individual producers and consumers.
An economic system in which both the government and individuals play important roles in production and consumption. Most modern economies are mixed economies.
Who will consume the goods and services produced?
How are goods and services to be produced?
the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth
wealth of nations
The Wealth of Nations" is a seminal book that represents the birth of free-market economic adam smith
a system whereby the government undertakes to protect the health and well-being of its citizens, especially those in financial or social need, by means of grants, pensions, and other benefits. The foundations for the modern welfare state in the US were laid by the New Deal programs of President Franklin D. Roosevelt.
An economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought
Father of Communism
acts 2 and 4
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