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Flashcards in Midterm - chapter 1 Deck (73):
1

businesses offering very similar products to the same customers

competitors

2

services are intangible - no _____ characteristics

services are intangible - no physical characteristics

3

an economy in which resources are owned and controlled by the government

command economy

4

studies individual relationships between producers and consumers

microeconomics

5

  • an economy in which goods and services are produced the way they have always been produced
  • it is used in countries that are less developed and are not yet participating int he global economy

traditional economy

6

What influences supply?

  • if consumers want product or service
  • if there's a lot of competition
  • price
  • natural disasters

7

What kind of economic system does the US have?

capitalism / market economy

8

an economy in which the resources are owned and controlled by the people of the country

market economy

9

What are the 4 principles that the US economic system is based on?

  1. Private property
  2. Freedom of choice
  3. Profit
  4. Competition

10

the amount of money available to the business after all costs and expenses have been paid

profit

11

How do you figure out profit?

Revenue - Expenses = Profit

12

Most basic needs include food, water, shelter, ______, but also good education, safety and employment.

Most basic needs include food, water, shelter, clothing, but also, good education, safety and employment.

13

people producing goods and services; people who work for a business

human resources

14

A want is a thing that adds ____ and _____ to our lives

a want is a thing that adds pleasure and comfort to our lives

15

What are the 3 economic systems?

  1. command economy
  2. market economy
  3. traditional economy

16

an expert in economics

economist

17

the quantity of a good or service that businesses are willing and able to provide

supply

18

not having enough resources to satisfy every need

scarcity

19

What influences demand?

  • how many consumers want a good or service
  • how many of a similar good or service is being produced

20

products and money used to produce goods and services

capital resources

21

examples of goods

  • food
  • clothing
  • toys
  • furniture
  • toothpaste

22

the quantity of a good or service that consumers are willing and able to buy

demand

23

Services are really ____ satisfied through the efforts of other people

services are really wants satisfied through the efforts of other people

24

the process of choosing which needs and wants will be satisfied

economic decision making

25

economic resources, including natural resources, human resources, and capital resources

factors of production

26

the value of the next best alternative that you were not able to choose

opportunity cost

27

things you can see and touch; they are products you can purchase to meet your wants and needs

goods

28

activities provided for the satisfaction of others that are consumed at the same time they are produced

services

29

A good is a thing you can ____ and touch

a good is a thing you can see and touch

30

someone who takes a risk in starting a business to earn a profit

entrepreneur

31

only one company provides a good or service

monopoly

32

the ______ is the largest producer of goods and services in the world

the United States is the largest producer of goods and services in the world

33

capital resource also includes ____

capital resource also includes money

34

examples of services

  • haircuts
  • doctor appointments
  • mail delivery
  • car repair

35

studies the economic behavior and relationship of the entire society

macroeconomics

36

the freedom to make decisions independently while accepting the consequences of those decisions

freedom of choice

37

things that add comfort and pleasure to your life

wants

38

What are the 3 economic questions?

  1. What goods and services will be produced?
  2. How will goods and services be produced?
  3. What needs and wants will be satisfied with the goods and services produced?

39

  • the graphic view of the supply for a product or service
  • illustrates the relationship between the price of the product and the quantity businesses will supply

supply curve

40

what you make when you give something up to have something else

trade off

41

examples of needs

  • food
  • water
  • air
  • shelter

42

the rivalry among businesses to sell their goods and services

competition

43

the quantity of a good or service that consumers are willing and able to buy

demand

44

What are some benefits of competition?

forces businesses to improve products, keep costs low, provide effective customer service and search for new ideas

45

the method a country uses to answer the three economic questions

economic system

46

the point where supply and demand are equal

market/equilibrium price

47

examples of natural resources

  • oil
  • minerals
  • water

48

things available to be used to produce goods and services

economic resources

49

anywhere that goods and services are exchanged

marketplace

50

the mismatch of unlimited wants and needs and limited economic resources

basic economic problem

51

Most of our wants are satisfied with ____ and ______

most of our wants are satisfied with goods and services

52

a _____ is an activity that is consumed at the time of purchase

a service is an activity that is consumed at the time of purchase

53

  • economy based on freedom of choice
  • you an make decisions independently and must accept the consequences of those decisions

free / private enterprise

54

We ____ need everything we see or hear about

We DO NOT need everything we see or hear about

55

an economy that combines elements of the command and market economies

mixed economy

56

examples of capital resources

  • money
  • buildings
  • equipment
  • supplies

57

a ____ are things that are necessary for survival

a need are things that are necessary for survival

58

remember that resources are ____

limited

59

the quantity of good or service that businesses are willing and able to provide

supply

60

a person who buys and uses goods and services

consumer

61

Wants are ____ and include computers, iPhone and designer jeans

Wants are unlimited and include computer, iPhone and designer jeans

62

  • the graphic view of the demand for a product or service
  • illustrates the relationship between the price of the product and the quantity demanded by consumers

demand curve

63

natural resource - raw materials supplied by ____

natural resource - raw materials supplied by nature

64

kind of economy where government decides what kinds of goods or services are produced

communism

65

human resource - _____ who produce  the goods and services

human resource - people who produce the goods and services

66

raw materials supplied by nature

natural resources

67

the private ownership of economic resources  by individuals rather than by the government

capitalism

68

things that are required in order to live

needs

69

What are the 3 economic resources?

  1. natural resources
  2. human resources
  3. capital resources

70

capital resource - ____, equipment and buildings used in the production of goods and services

capital resource - tools, equipment and buildings used inthe production of goods and services

71

examples of wants

  • iPhone
  • large house
  • luxury car

72

examples of human resources

  • farmers
  • factory workers
  • sales people

73

What sets demand?

if consumers want to purchase it or not