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Definition
| Unlimited wants vs. Limited resources. We can't have everything so we have to make choices. |
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Term
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Definition
| What we give up when we make choices. |
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Definition
| The next best thing that we can't do when we make a choice. |
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Term
| List the 4 factors of production. |
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Definition
| Land, Labor, Capital, and Entrepreneurship |
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Term
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Definition
| Property and the resources that come out of the land |
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Term
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Definition
| The work people do and is also known als human capital |
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Definition
| The tools, equipment and all the things used in the production and sale of the product |
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Definition
| The running of the usiness, and deciding how to use the other 3 factors of production |
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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 |
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Definition
| When pay is based on how many hours they work |
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Term
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Definition
The rate at which goods/services are produced. |
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Term
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Definition
| The actual products made for people to buy. |
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Term
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Definition
Activities performed to satisfy wants and needs. |
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Term
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Definition
Costs that are subject to change. |
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Term
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Definition
| Costs that will not change. |
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Term
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Definition
| Variable and fixed costs add up to this. |
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Term
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Definition
| When each worker focuses on doing a specific task over and over. |
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Term
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Definition
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Term
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Definition
| Splitting up the work into smaller and more specialized jobs |
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Term
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Definition
| The product moves down the line, and is assembled by a series of workers who specialize in doing specifc tasks. |
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Term
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Definition
| Typically those that involve a significant amount of physical work. |
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Term
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Definition
| Typically more professional, office related jobs. |
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Term
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Definition
| Using resources that could bring immediate benefits for the purpose of gaining greater benefits later. |
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Term
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Definition
| A business investing in human capital and capital goods. |
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Term
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Definition
| Producers have an incentive to produce what consumers want, because doing so will make them more money. |
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Term
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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. |
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Term
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Definition
| Producers will decide what and how much of a product to produce based on consumer demand. |
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Term
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Definition
| Book written by Adam Smith in 1776 |
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Term
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Definition
| Leave alone or the government should stay out of the economy. |
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Term
| The invisible hand of competition |
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Definition
Individuals should be motivated by their own self interests, it will produce the most efficient output of goods and services. |
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Term
| Capitalism/ Free Enterprise |
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Definition
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Term
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Definition
| Where prices and production are controlled by the government. |
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Term
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Definition
| Closely mirror command economies. The Soviet Union and China are examples. |
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Term
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Definition
| Economy based on religion and tradition. |
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Term
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Definition
| Where there are no pure market or command economies. |
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Term
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Definition
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Term
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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. |
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Term
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Definition
| Result of the Keynesian theory. The government spends more than what it takes in through tax revenues. |
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Term
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Definition
| Government protection of property ownership for inventions and innovations. |
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Term
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Definition
| Government protection of our ideas |
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Term
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Definition
| Businesses without competition; Illegal |
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Term
| Food and Drug Administration and the Federal Communication Commission |
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Definition
| Government agencies that protect the consumer |
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Term
| Federal Deposit Insurance Corporation (FDIC) |
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Definition
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Term
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Definition
| The percentage of deposits in reserve that the FDIC requires to be kept |
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Term
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Definition
| Large businesses that also consist of several unrelated businesses. |
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Term
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Definition
| When one company buys another similar company |
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Term
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Definition
| When one company buys another that was previously its supplier. |
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Term
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Definition
| When companies that make similar products merge together. |
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Term
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Definition
| A business owned by one person |
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Term
| Unlimited financial liability |
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Definition
| Owner's personal assets can be taken to pay the debts of the business if the business assets don'e cober them. |
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Term
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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. |
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Term
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Definition
| A business that is treated by law as an individual. |
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Term
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Definition
| Where many corporations can sell their stock. |
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Term
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Definition
| The owner's share of the company. |
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Term
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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. |
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Term
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Definition
| Payments made to stockholders from the profits of the business. |
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Term
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Definition
| Can be sold as a type of loan to the corporation. |
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Term
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Definition
Voted for by stockholders and bake decisions for the corporation. |
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Term
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Definition
When the profits of the corporation are taxed, and the individual owner's share of the profits are also taxed. |
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Term
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Definition
| Purchasing the rights to won the local rights to a trademark corporation such as McDonalds. |
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Term
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Definition
| Laws that prohibit monopolies, and protect competition. |
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Term
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Definition
| An organization of workers who come together to improve the work. |
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Term
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Definition
| Negotiating improved wages and working conditions for the entire group of employees. |
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Term
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Definition
| Groups of skilled workers ex: International Brotherhood of Electricians |
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Term
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Definition
| Workplaces where only members of the labor union can be employed. |
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Term
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Definition
| Used to help labor and management turn to a neutral 3rd party who comes in to help come up with a solution. |
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