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Flashcards in Intro to econ test 1 Deck (37):
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Scarcity

How much or how little something is made

1

Economics

How people satisfy their needs and wants by making choices

2

Goods

Physical objects like shirts and shoes

3

Services

Actions that one person performs for another

4

Three factors of production

Land, labor, and capital

5

Entrepreneur

Person that starts their own business

6

Opportunity cost

The best thing given up by making a certain decision

7

Economic system

Method used to produce and distribute goods and services

8

Patriotism

Love of your country

9

Standard of living

Level of economic success

10

Traditional economy

Uses customs decide how to produce and consume goods and services

11

Market economy

Free exchange to decide how to produce and consume goods and services

12

Command economy

Government decides how to produce and consume goods and services

13

Mixed economy

Market economy with government involvement

14

Communism

Uses command economy, everyone makes the same money

15

Capitalism

Uses the market economy, money is based on competition

16

Least developed nation

Nation concerned with food, sanitation, disease, and a growing population

17

Developing nation

Nation with workforce, better sanitation, and life expectancies

18

Developed nation

Technological, healthcare, diverse economy, and a steady population

19

Free enterprise

Individuals make economic choices and start businesses in a free-market

20

JD Rockefeller

Around 1900, he started standard oil, the largest oil company in history

21

Andrew Carnegie

Around 1900, he started US steel and became the richest person in US history

22

Bill Gates

Started Microsoft and became a billionaire

23

Profit motive

Force that makes people and organizations improve

24

Open opportunity

Anyone can compete in the free-market

25

Voluntary exchange

People can decide what they want to buy

26

Macroeconomics

The study of entire economies

27

Microeconomics

Study small economic units, like families or businesses

28

Gross domestic product(GDP)

Value of goods and services in economies

29

Four phases of the business cycle

One – general prosperity: economy growing up

Two – boom period: Economic activity at its peak

Three – economy starting to slow down

Four – recession

30

Public sector

Involves the government

31

Private sector

Involves individuals and businesses

32

Welfare

Government aid to the poor

33

What level of government is responsible for welfare programs?

Federal

34

Social Security

Money from the government to every American over 65

35

Medicare

Government health insurance to people over 62

36

Medicaid

Government health insurance to lower income people