Unit 1 Key Terms

Question 0

State of being equal in status, rights and opportunity

Answer 0

Equality

Question 1

Power to act, speak and think as one wants without restraint

Answer 1

Freedom

Question 2

Legal designation of the ownership of property by nongovernment legal entities

Answer 2

Private property

Question 3

Fair behavior/treatment

Answer 3

Justice

Question 4

Legal right and power to give orders and enforce rules

Answer 4

Authority

Question 5

Institutions and officials organized to establish and carry out public policy

Answer 5

Government

Question 6

The ability to cause others to behave as they might not otherwise choose to do

Answer 6

Power

Question 7

The quality of being accepted as an authority often applied to laws or those in power

Answer 7

Legitimacy

Question 8

Product or service available for all people to consume whether they pay or not

Answer 8

Public goods

Question 9

Independent state, especially one in which people share common culture

Answer 9

Nation-state

Question 10

Right to exercise supreme authority over geographic region, group of people or oneself

Answer 10

Sovereignty

Question 11

Process and method of making decisions for groups, generally applied to governments although also seen in human interactions

Answer 11

Politics

Question 12

Established organization, especially one providing public service and rules that guide it

Answer 12

Institutions

Question 13

System of government in which citizens express supreme power, acting either directly or through elected officials

Answer 13

Democracy

Question 14

System of government in which a single ruler expresses supreme power based on heredity or divine right

Answer 14

Monarchy

Question 15

System of government in which a single person or group excercises extreme power by controlling military and police

Answer 15

Dictatorship

Question 16

System that relies on mainly markets to determine what goods and services to produce and how to do so

Answer 16

Market economy

Question 17

System in which decisions about what to produce and how are made on the basis of customs, beliefs and traditions

Answer 17

Traditional economy

Question 18

Nation in which supreme power rests with the citizens and is exercised by their elected representatives

Answer 18

Republic

Question 19

Legislative assembly in which elected representatives debate and vote on proposed laws

Answer 19

Parliament

Question 20

System that relies mainly on the central government to determine what goods and services to produce and how to produce them

Answer 20

Command economy

Question 21

Branch concerned with the production, consumption and transfer of wealth

Answer 21

Economics

Question 22

Wealth, resources, production and consumption of goods and services of a nation/ management of resources

Answer 22

Economy

Question 23

Objective and fact based economics, can be tested and approved/disproved

Answer 23

Positive economics

Question 24

Subject and value based economics, opinion based so cannot be approved or disproved

Answer 24

Normative economics

Question 25

State of being short in supply

Answer 25

Scarcity

Question 26

Goods that are not necessary but we wish for and goods and services that are required

Answer 26

Wants and needs

Question 27

Balance achieved between two desirable features, compromise

Answer 27

Tradeoff

Question 28

A process by which business decisions are analyzed

Answer 28

Cost benefit analysis

Question 29

Motives or what encourages one to do something

Answer 29

Incentive

Question 30

Products, possessions or merchandise

Answer 30

Goods

Question 31

Intangible of doing work or helping someone

Answer 31

Services

Question 32

Resources used by company to produce goods and services

Answer 32

Factors of production

Question 33

Aim to enthusiastically develop yourself or the world we live in

Answer 33

Entrepreneurship

Question 34

Wealth in the form of money or other assets owned by person or organization

Answer 34

Capital

Question 35

The effectiveness of productive effort, rate of output vs rate of input

Answer 35

Productivity

Question 36

Loss of potential gain from other alternatives when one opportunity is chosen

Answer 36

Opportunity cost

Question 37

Curve that shows combination of goods and services that can be produced while using available resources

Answer 37

Production possibilities frontier

Question 38

Concept or idea of fairness in economics

Answer 38

Economic equity

Question 39

System of production and exchange of goods and services and use of resources

Answer 39

Economic system

Question 40

Wages paid for services of labor, interest is paid for services of capital, rent is paid for services provided by land and profit

Answer 40

Factor payment

Question 41

Economic system combining private and public enterprise

Answer 41

Mixed economy

Question 42

System where few restrictions are placed

Answer 42

Free enterprise system

Question 43

Basis of global trade as few countries produce enough goods to be completely self sufficient

Answer 43

Specialization

Question 44

Assignment of different parts of manufacturing process or task to different people to improve efficiency

Answer 44

Division of labor

Question 45

Act of buyers and sellers freely and willingly engaging in marker transactions

Answer 45

Voluntary exchange

Question 46

Exchange of goods and services without using money

Answer 46

Barter

Question 47

Current medium of exchange, assets property and resources owned by someone/ wealth

Answer 47

Money

Question 48

Consequence of specialization or division of labor economic participants are dependent on others for products they cannot get themselves

Answer 48

Economic interdependence

Question 49

Ability of someone to carry out economic activity more efficiently than others

Answer 49

Absolute advantage

Question 50

Ability of someone to carry out economic activity more efficiently than another activity

Answer 50

Comparative advantage