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Flashcards in 3rd Nine Weeks Deck (42):
1

Study of choices; the common science of how and why businesses make choices

Economics

2

Biblical concept that refers to a persons responsibility to make proper choices

Stewardship

3

A tangible product

Good

4

Intangible product

Service

5

Product that costs you something, something you don’t want

Nuisance good

6

Economic cost of something

Is the value people place on it

7

Value of something because it means something to you

Subjective value

8

Large scale (city, government)

Macroeconomics

9

Small scale (small business)

Microeconomics

10

Not being able to get enough of something (limited wants)

Insatiability

11

Not having enough (running low)

Scarcity

12

Everything has an opportunity cost

True or false

True

13

Worth determined by the nature of the product itself (ex. Gold)

Intrinsic value

14

For a small business (microeconomics)

Production possibility graph

15

Two basic elements of the circular flow model l

Business and households

16

Most important factor of production

Entrepreneurship

17

What are models used for

Instruction and prediction

18

Any withdraw from a financial market

Dissaving

19

Payment made by the government with no anticipation of repayment

Transfer payment

20

Act of buying

Demand

21

People purchase when they have a regular income

Normal good

22

Goods That are purchased when people can’t afford normal goods

Inferior goods

23

Things that are purchased together

Complementary

24

The amount of product the company is willing to provide at various prices

Supply

25

An excess of unsold products

Surplus

26

What’s the solution of a surplus

Increase demand

27

What’s the solution to a shortage

Decrease demand

28

Receive no additional satisfaction when you buy more and more of the same product

Diminishing marginal utility

29

Market equilibrium price is static

True or false

False

30

Price ceiling is counterproductive



True or false

True

31

What has a change in demand

Change in preference, people’s income, technology, production cost, price

32

What is circular flow model? Macroeconomics or microeconomics?

Macroeconomics

33

Who said utility of the user determines the value of the product?

Carl menger

34

Three functions of price

To provide incentives, to transmission information, to redistribute income

35

Utility for the user...

Determines the value of the object

36

What best describes modern America

Capitalism

37

Father of communism

Karl Marx

38

Measure a nations wealth through gold and silver

Mercantilism

39

Example of a public good

Highways

40

Chief advantage of a corporation

Limited personal liability

41

Disadvantage to a corporation

- higher taxes
- greater government regulations
- lack of secrecy
- impersonality

42

Portion of products

Dividend