Term
| The 3 key economic questions |
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Definition
1. What will I produce
2. How will I produce
3. For whom will I produce for |
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Term
| What are the 4 categories of Goods and Services produced |
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Definition
Consumption
Captital
Government
Exports |
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Term
| Consumption goods and services |
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Definition
| goods and services bought by individual consumers or households |
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Term
| An example of a Consumption g/s |
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Definition
| Toothpaste or Tissue paper |
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Term
| Capital goods and services |
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Definition
| goods and services bought by businesses to increase the productive capacity |
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Term
| An example of a Capital g/s |
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Definition
| Machines, equipment and buildings |
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Term
| Government goods and services |
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Definition
| goods and services bought by governments; includes local, state, and federal governments |
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Term
| An example of a Government g/s |
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Definition
| Weapons, offices, missile systems, and planes |
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Term
| Export goods and services |
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Definition
| goods and services produced in one country and sold in other countries |
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Term
| What percent does the US export goods and services |
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Definition
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Term
| How do we produce the goods and services? |
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Definition
| Goods and services produced using economic resources or factors of production |
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Term
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Definition
| Land,Labor, Capital,Entrepreneurship |
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Term
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Definition
| all natural resources or “gifts of nature” used to produce goods and services |
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Term
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Definition
| Arable land; crops or wheat, forests, mineral and oil deposits, and water |
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Term
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Definition
| time and work effort used to produce the goods and services |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| tools, machines, equipment, and other tools to produce goods and services |
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Term
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Definition
| include the “knowledge” and work experience required through education and work experience |
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Term
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Definition
| knowledge and skills that people obtain through education, on the job-training and work experience |
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Term
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Definition
| includes the skills and ability that combine resources to produce goods and services |
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Term
| Who consumes the product? |
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Definition
| depends on the income people earn and the goods and services they want to buy. |
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Term
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Definition
| Wages,Rent, Interest, Profit |
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Term
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Definition
| income paid for the service of labor |
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Term
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Definition
| income paid for the use of land |
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Term
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Definition
| income paid for the use of capital |
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Term
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Definition
| income loss; income paid by an entrepreneurship for using a business |
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Term
| 2 types of Income Distribution |
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Definition
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Term
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Definition
| the distribution of income among the factors of production |
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Term
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Definition
| distribution of income among households |
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Term
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Definition
| one groups private decision makers into household, businesses, and market into ( Goods (or products) market and Resources (or factor)market) |
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Term
| Resources flow from household to businesses through what market? |
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Definition
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Term
| Goods and services of products flow from businesses to households through what market? |
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Definition
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Term
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Definition
| any institution or mechanism that puts buyers (“demanders”) and sellers (“suppliers”) |
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Term
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Definition
| Stock market, world oil market, e-bay, Amazon |
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Term
| In the Circular Flow Diagram 2 things happen |
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Definition
1. Households receive money income
2. Business receive revenues |
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Term
| 2 things that happen in Resource Markets |
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Definition
- Households sell
- Businesses buy |
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Term
| 2 things that happen in Product Markets |
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Definition
- Businesses sell
- Households buy |
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Term
| 2 things Businesses do in the CFD |
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Definition
- Sell Products
- Buy Resources |
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Term
| 2 things Households do in the CFD |
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Definition
- Sell resources
- Buy goods and services/products |
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Term
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Definition
| Federal, state, and local |
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Term
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Definition
- Government revenue
- Government expenditures |
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Term
Major expenditures of
Federal Government |
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Definition
Goods and Services
Social Security and Wellfair Benefits
State and Local spending |
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Term
| Example of Federal Governement goods and services |
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Definition
| legal system, national defense, and Homeland Security |
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Term
| Examples of Federal Gov. Wellfair benefits |
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Definition
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Term
| Expenditures by state and local government |
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Definition
| Goods and services and Welfare Benefits |
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Term
| Examples of expenditures state/local goods and services |
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Definition
| road construction, police services, garbage collection |
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Term
| Examples of state/local expenditures of welfare benefits |
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Definition
| payments to low-income families and unemployment benefits |
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Term
| 3 types of federal gov. revenues |
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Definition
| personal, corporate, social security |
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Term
| State and local gov revenues |
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Definition
- Sales tax
- Property tax |
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Term
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Definition
| in a particular set of institutional arrangements and coordinating mechanisms used for producing goods and services |
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Term
| Answers the question what, how, and for whom |
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Definition
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Term
| 2 types of economic systems |
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Definition
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Term
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Definition
| a system in which economic resources are owned by the government and economic decisions made by the central government body |
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Term
| 2 types of Command System |
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Definition
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Term
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Definition
Soviet Union (up to ’92)
Cuba
North Korea |
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Term
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Definition
| a system where most economic resources are privately owned and market and prices are used to direct and coordinate economic activities |
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Term
| What makes the market system work? |
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Definition
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Term
| Who is the father of economics? |
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Definition
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