Test 1 Economics Chapter 1-3 Flashcards
(49 cards)
Greek word for economics
“House Law”
The Pilgrims came on what year?
1620
The comutal did not work because they lack
Incentives
Study of national and international economies and how these major economies are affected by large-scale choices and public policies
Macroeconomics
Seek to show the relationships among the various components of an economy
Economic model
A tangible item that people want and for which they will pay
Good
Intangible goods produced by labor for which people expect to pay
Service
The human desire to have and use a certain good
Want
A mechanism that allows people to exchange goods
Market
A very large number of people to whom very large quantities of products are sold
Mass market
The quantity of a good for sale at a certain price under certain conditions or simply the amount of a good that is produced
Supply
The amount of a good that is bought at a certain price under certain conditions
Demand
First thing to understand about economics
All things has to be worked for
Every person is a…
Consumer
Some people are
Producers
All producers are
Consumers
Is there a limit to the supply of goods?
Yes
What limits the availability of goods?
Cost
Are there always enough goods for everyone?
No, not always
A necessity, something it would be difficult to do without
Need
For those goods we need must we are willing to do what?
To pay more
Are all needs wants?
Yes
Are all wants needs?
No
Another term for capital good
Investment good
