Chapter 1 Flashcards
(27 cards)
Economy
An arena for the provision and use of resources
Labour productivity
The quantity of output per unit of labour employed
Division of labour
Where production is split into separate labour tasks
Classical economics
A pioneering school of thought originating in Great Britain and spreading to other European countries between the 1600s and 1800s
Technological change
The introduction and diffusion of new products and processes in the economy
Industrial Revolution
A fundamental change in the organisation of production initiated in Great Britain during the late 1700s and early 1800s
Agents
Individuals, groups, or organisations that make economic decisions
Serfdom
The subjection of peasants under a feudal system
Market
An arena in which transactions are conducted between buyers and sellers
Workers
People who work for wages
Capitalism
An economic system driven by profit, in which a large part of the capital is owned by private firms that sell their goods in markets and employ workers for production
Firms
Organisations that produce goods and services for sale
Consumer
An individual who buys goods or services
Bank
An organisation that receives deposits and gives out loans
Enclosures
The process of grouping land into privately owned larger farms
Government
An organisation with the responsibility for ruling a particular country and it’s national territories
Property rights
Property rights generally allow an owner to use a good, earn income from a good, and transfer, alter or destroy the good. Such rights are typically enforced by the government
Price
An amount of money required to purchase a unit of goods or services
Competition
Where agents are driven to outdo each other in markets
Liberalism
A set of ideas that places the freedom of the individual as its central feature
Free trade
A policy that promotes the removal of barriers to trade between countries
Exploitation
Making unfair use of someone else’s work
Division of Labour (key economist)
Adam Smith
Self-interest (key economist)
Adam Smith
