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Economics (senior year) > Economic part1 > Flashcards

Economic part1 Flashcards

0
Q

An item that we desire but that is not essential to survival

A

Want

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1
Q

Something like air, food, or shelter that is necessary for survival

A

Need

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2
Q

The study of how people seek to satisfy their needs and wants by making choices

A

Economics

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3
Q

Physical objects such as clothes or shoes

A

Goods

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4
Q

Actions or activities one person performs for another

A

Services

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5
Q

Limited quantities of resources to meet unlimited wants

A

Scarcity

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6
Q

A situation in which a good or service is unavailable, or a situation in which the quantity demanded is greater than the quantity supplied, also know as excess demand

A

Shortage

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7
Q

Land, labor, and capital; the three groups of resources that’s are used to make all goods and services

A

Factors of Production

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8
Q

The effort that people devote to a task for which they are paid

A

Labor

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9
Q

Any human made resource that is used to create other goods or services

A

Capital

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10
Q

Ambitious leader who combines land, labor, and capital to create and market new goods and services

A

Entrepreneur

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11
Q

Using fewer resources than an economy is capable of using

A

Underutilization

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12
Q

As we shift factors of production from making one good or service to another, the cost producing the second item increases

A

Law of increasing costs

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13
Q

The income people receive for supplying factors of production: land, labor, or capital

A

Factor payments

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14
Q

Government programs that protect people experiencing unfavorable economic conditions

A

Safety Net

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15
Q

Level of economic prosperity

A

Standard of living

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16
Q

Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services

A

Traditional Economy

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17
Q

Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets

A

Market economy

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18
Q

Economic system in which the central government makes all decisions on the production and consumption of goods and services

A

Centrally Planned Government

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19
Q

An arrangement that allows buyers and sellers to exchange things

A

Market

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20
Q

The concentration of the productive efforts of individuals and firms on a limited number of activities

A

Specialization

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21
Q

A person or group of people living in the same residence

A

Household

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22
Q

An organization that uses resources to produce a product, which it then sells

A

Firm

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23
Q

The financial gain made in a transaction

A

Profit

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24
One's own personal gain
Self-Intrest
25
An expectation that encourages people to behave in a certain way
Incentive
26
The power of the consumers to decide what gets produced
Consumer sovereignty
27
A social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society
Socialism
28
A political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government
Communism
29
Large farm leased from that state to groups of peasant farmers
Collective
30
An economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decisions rather than by state control; and determined in a free market
Free enterprise
31
To sell to individuals state-run firms, which are then allowed to compete with one another in the marketplace
Privatize
32
The force that encourages people and organizations to improve their material well being
Profit motive
33
The concept that people may decide what agreements they want to enter into
Free contract
34
The struggle among producers for the dollars of consumers; the rivalry among sellers to attract customers while lowering costs
Competition
35
Laws requiring companies to provide full information about their products
Public Disclosure Laws
36
The total value of all final goods and services produced in a particular economy; the dollar value of all final goods and services produced within a country's borders in a given year
Gross Domestic Product (GDP)
37
A period of macroeconomic expansion followed by a period of contraction
Business Cycle
38
A commitment to the value of work and purposeful activity; system of values that gives central importance to work
Work ethic
39
The process used to produce a good or service
Technology
40
A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
Public good
41
The part of the economy that involves the transactions of individuals and businesses
Private sector
42
Someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good
Free rider
43
A situation in which the market does not distribute resources efficiently
Market Failure
44
An income level below which income is insufficient to support families or households
Poverty Threshold
45
Government aid to the poor
Welfare
46
Goods and services provided for free or at greatly reduced prices
In-kind benefits
47
The desire to own som thing and the ability to pay for it
Demand
48
When consumers react to an increase in a good's price by consuming less of that good and more of other goods
Substitution effect
49
A graphic representation of a demand schedule
Demand curve
50
A measure of how consumers react to a change in price
Elasticity of demand
51
Describes demand that is not very sensitive to a change in price
Inelastic
52
The total amount of money a firm receives by selling goods or services
Total revenue
53
The point at which quantity demanded and quantity supplied are equal
Equilibrium
54
Describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity demanded in a market
Disequilibrium
55
When quantity demanded is more than quantity supplied
Excess Demand
56
When quantity supplied is more than quantity demanded
Excess supply
57
A maximum price that can be legally charged for a good or service
Price ceiling
58
A price ceiling placed on rent
Rent Control
59
A minimum price that an employer can pay a worker for an hour of labor
Minimum Wage
60
Situation in which quantity supplied is greater than quantity demanded; also known as excess supply
Surplus
61
The financial and opportunity costs consumers pay when searching for a good or service
Search costs
62
A sudden shortage of a good
Supply shock
63
A system of allocating scarce goods and services using criteria other than price
Rationing
64
A market in which goods are sold illegally
Black Market
65
A market structure in which a large number of firms all produce the same product
Perfect competition
66
A product that is the same no matter who produces it, such as petroleum , notebook paper, or milk
Commodity
67
Any factor that makes it difficult for a new firm to enter a market
Barrier to entry
68
A market structure that does not meet the conditions of perfect competition
Imperfect competition
69
The expenses a firm must pay before it can begin to produce and sell goods
Start-up costs
70
A market dominated by a single seller
Monopoly
71
A license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
Patent
72
The right to sell a good or service within an exclusive market
Franchise
73
A government issued right to operate a business
License
74
A division of customers into groups based on how much they will pay for a good
Price discrimination
75
The ability of a company to change prices and output lie a monopolist
Market Power
76
A series of competitive price cuts that lowers the market price below the cost of production
Price war
77
An agreement among firms to divide the market, set prices, or limit production
Collusion
78
An agreement among firms to charge one price for the same good
Price fixing
79
A formal organization or producers that agree to coordinate prices and production
Cartel
80
Selling a product below cost to drive competitors out of the market
Predatory Pricing
81
Like a cartel, an illegal grouping of companies that discourages competition
Trust
82
a combination of two or more companies into a single firm
Merger
83
The removal of some government controls over a market
Deregulation
84
An establishment formed to carry on commercial enterprise
Business organization
85
A business owned and managed by a single individual
Sole proprietorship
86
Authorization to start a business issued by the local government
Business license
87
Law in a city or town that designates separate areas for residency and for business
Zoning law
88
The legally bound obligation to pay debts
Liability
89
Payment other than wages or salaries
Fringe benefit
90
A business organization owned by two or more persons who agree on specific divisions of responsibilities and profits
Partnership
91
Partnership in which parteners share equally in both responsibility and liability
General partnership
92
Partnership in which only one partner is required to be a general partner
Limited partner
93
Partnership in which all partners are limited partners
Limited liability partnership (LLP)
94
Money and other valuables belonging to an individual or business
Assets
95
A legal entity owned by individual stockholders
Corporation
96
A certificate of ownership in a corporation
Stock
97
A formal contract to repay borrowed money with interest at fixed intervals
Bond
98
License to form a corporation issued by state government
Certificate of incorporation
99
The portion of corporate profits paid out to stockholders
Dividend
100
The combination of toe or more firms competing in the same market with the same good or service
Horizontal Merger
101
The combination of toe or more firms involved in different stages of producing the same good or service
Vertical merger
102
Business combination merging more than three businesses that make unrelated products
Conglomerate
103
Large corporation that produces and sells its goods and services throughout the world
Multinational corporation (MNC)
104
Share of earnings given as payment
Royalty
105
A business organization owned and operated by a group of individuals for their mutual benefit
Cooperative
106
Institution that functions much like a business, but does not operate for the purpose of generating profits
Nonprofit Organization
107
Nonprofit organization that promotes the interests of a particular industry
Trade association

Economics (senior year) (7 decks)

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