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Flashcards in Chapter 5 Terms Deck (12):
1

An increase in the quantity of goods and services a nation can produce.

Economic Growth

2

The production of more goods and ser­ vices because business firms are using more land, labor, or financial capital.

Extensive Growth

3

The production of more goods or services by using existing factors of production with greater efficiency.

Intensive Growth

4

Items that are purchased for personal use.

Consumer Goods

5

Items that are used to produce consumer goods.

Capital Goods

6

The allocation of limited resources to produce either consumer goods or capital goods.

Consumer goods/Capital goods tradeoff

7

Describes a business firm that uses a great deal of human labor relative to real capital.

Labor Intensive

8

Describes a business firm that uses more automated equipment than human labor.

Capital Intensive

9

A viewpoint maintaining that each person in the nation has a right to a part of the nation’s wealth simply because he is a part of the human race.

Egalitarian Fairness

10

An equal distribution of the nation’s income regardless of each person’s ability to contribute to its pool of wealth.

Economic Leveling

11

A viewpoint maintaining that the only economic right to which citizens are entitled is the right to own and use property free of governmental interference and that the accumulation of wealth is the sole responsibility of each individual.

Libertarian Fairness

12

Another name for the libertarian view of economic fairness allowing for a “survival of the fittest” in the accumulation of wealth.

Economic Darwinism