Details Title: 3rd Quarter Test Description: Terms for 3rd Quarter Test Total Flash Cards: 66 Created: 03/23/2008 07:25:36		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Scarcity Definition Unlimited wants vs. Limited resources. We can't have everything so we have to make choices. Term Trade-offs Definition What we give up when we make choices. Term Opportunity cost Definition The next best thing that we can't do when we make a choice. Term List the 4 factors of production. Definition Land, Labor, Capital, and Entrepreneurship Term Land Definition Property and the resources that come out of the land Term Labor Definition The work people do and is also known als human capital Term Capital Definition The tools, equipment and all the things used in the production and sale of the product Term Entrepreneurship Definition The running of the usiness, and deciding how to use the other 3 factors of production Term Salary Definition A fixed amount paid to a worker and is not tied to working a set number of hours or producing a certain amount of a product Term Wage Definition When pay is based on how many hours they work Term Productivity Definition The rate at which goods/services are produced. Term Goods Definition The actual products made for people to buy. Term Services Definition Activities performed to satisfy wants and needs. Term Variable Costs Definition Costs that are subject to change. Term Fixed Costs Definition Costs that will not change. Term Total Costs Definition Variable and fixed costs add up to this. Term Specialization Definition When each worker focuses on doing a specific task over and over. Term Efficient Definition Little waste Term Division of labor Definition Splitting up the work into smaller and more specialized jobs Term Assembly Line Definition The product moves down the line, and is assembled by a series of workers who specialize in doing specifc tasks. Term Blue Collar Jobs Definition Typically those that involve a significant amount of physical work. Term White Collar Jobs Definition Typically more professional, office related jobs. Term Investment Definition Using resources that could bring immediate benefits for the purpose of gaining greater benefits later. Term Capital Investment Definition A business investing in human capital and capital goods. Term Profit Incentive Definition Producers have an incentive to produce what consumers want, because doing so will make them more money. Term Market Economy Definition Individuals own the factors of production. Citizens are free to buy whatever they want, and the work in whatever job they are qualified for. Term Consumer Sovereignty Definition Producers will decide what and how much of a product to produce based on consumer demand. Term Wealth of Nations Definition Book written by Adam Smith in 1776 Term Laissez Faire Definition Leave alone or the government should stay out of the economy. Term The invisible hand of competition Definition Individuals should be motivated by their own self interests, it will produce the most efficient output of goods and services. Term Capitalism/ Free Enterprise Definition A market economy Term Command Economies Definition Where prices and production are controlled by the government. Term Communism and Socialism Definition Closely mirror command economies. The Soviet Union and China are examples. Term Traditional Economy Definition Economy based on religion and tradition. Term Mixed Economy Definition Where there are no pure market or command economies. Term John Maynard Keynes Definition Economist Term Keynesian Theory Definition Government spending can be used to stimulate the economy. If the economy is struggling the government should increase spending and lower taxes to put more money in the economy. Term Deficit Spending Definition Result of the Keynesian theory. The government spends more than what it takes in through tax revenues. Term Patents Definition Government protection of property ownership for inventions and innovations. Term Copyrights Definition Government protection of our ideas Term Monopolies Definition Businesses without competition; Illegal Term Food and Drug Administration and the Federal Communication Commission Definition Government agencies that protect the consumer Term Federal Deposit Insurance Corporation (FDIC) Definition Insure Bank deposits Term Reserve Requirements Definition The percentage of deposits in reserve that the FDIC requires to be kept Term Conglomerates Definition Large businesses that also consist of several unrelated businesses. Term Merge Definition When one company buys another similar company Term Verticle Merger Definition When one company buys another that was previously its supplier. Term Horizontal Merger Definition When companies that make similar products merge together. Term Sole Proprietorship Definition A business owned by one person Term Unlimited financial liability Definition Owner's personal assets  can be taken to pay the debts of the business if the business assets don'e cober them. Term Partnership Definition Allows 2 or more owners to share the major responsibilities and denbts, but they also share the profits. It also has unlimited financial liability. Term Corporation Definition A business that is treated by law as an individual. Term Stock Market Definition Where many corporations can sell their stock. Term Stock Definition The owner's share of the company. Term Limited Liability Definition A major advantage of a corporation; a person can only lose what they have invested, and are not liable for the debts of the business. Term Dividends Definition Payments made to stockholders from the profits of the business. Term Bonds Definition Can be sold as a type of loan to the corporation. Term Board of Directors Definition Voted for by stockholders and bake decisions for the corporation. Term Double Taxation Definition When the profits of the corporation are taxed, and the individual owner's share of the profits are also taxed. Term Franchise Definition Purchasing the rights to won the local rights to a trademark corporation such as McDonalds. Term Anti-trust Laws Definition Laws that prohibit monopolies, and protect competition. Term Labor Union Definition An organization of workers who come together to improve the work. Term Collective Bargaining Definition Negotiating improved wages and working conditions for the entire group of employees. Term Craft Unions Definition Groups of skilled workers ex: International Brotherhood of Electricians Term Closed Shop Definition Workplaces where only members of the labor union can be employed. Term Mediation Definition Used to help labor and management turn to a neutral 3rd party who comes in to help come up with a solution.