Shared Flashcard Set

Details

Economics for Beginners
Vocabulary
11
Economics
12th Grade
02/19/2010

Additional Economics Flashcards

 


 

Cards

Term

Macroeconomics

Definition

The study of economics on a national or complete scale

 (tax cuts, unemployment, and entire retail industry)

Term
Microeconomics
Definition

The study of individual companies and people making their own decisions in regards to their best interest

(supply and demand, business choices, where to shop)

Term
Three Basic Questions of Economy
Definition
  1. What to produce
  2. How to produce it
  3. Who to produce for

 

Term
Types of Economic Systems
Definition
  1. Traditional
  2. Command
  3. Socialist
  4. Free Enterprise
Term
Traditional
Definition
Farming and agriculture, hunting, found in the 1400's in Europe, business, found in developing or 3rd world countries today.
Term
Command
Definition
The government tell (commands) the suppliers or businesses what to produce. (Communism)
Term
Socialist
Definition
Between free enterprise and command, government is involved, but this is because the people want the gov't involved, the gov't provides for basic level of goods (health care, education, etc.)
Term
Free Enterprise
Definition

Consumers and producers are free to determine what they want to produce and what they want to buy (no government involvment). Also known as a capitalism, free market economy.

Term
MODIFIED FREE ENTERPRISE SYSTEM
Definition
 Free Enterprise Sytem with some government involvement (ex. Unitied States's economic system)
Term

Factors of Production

Definition
  1. C- Capital (machinary, buildings, etc.)
  2. E- Entrepreneur (the person that forms the business)
  3. L-  Land (the land and all the natural resources to be gained from it)
  4. L-  Labor (the people,specialization allows for more effective use of labor)
Term
Circular Flow of Economic Activity
Definition
[image]
Supporting users have an ad free experience!