gdp Flashcards
(13 cards)
the total value of all final goods & services produced in a country in a given year
gross domestic product
the right of government to take private property for public use
eminent domain
the study of economic behavior & decision making in small units, such as households & firms
microeconomics
the study of economic behavior & decision making in a nation’s whole economy
macroeconomics
a shared good or service for which it would be inefficient or (1) impractical to make consumers pay individually (2) to exclude those who did not pay
public good
give people the right to control their possessions & use them as they wish
private property rights
an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
externality
someone who would not be willing to pay for a certain good or service
free rider
gives the inventor of a new product the exclusive right to produce & sell it for 20 years
patent
grants an author exclusive rights to publish & sell his or her creative works
copyright
an economic system that has some market based elements & some government involvement
mixed economy
the principle that everyone has the same legal rights
legal equality
drives individuals & businesses to make decisions that improve their material well-being
profit motive
