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First Semester Econ
N/A
32
Economics
12th Grade
01/23/2013

Additional Economics Flashcards

 


 

Cards

Term
Economics
Definition
study of how people seek to satisfy their wants and needs with limited resources
Term
Needs
Definition
Item needed for survival: food, water, shelter, transportation, etc
Term
Wants
Definition
Items you want but aren't needed for survival
Term
Scarcity
Definition
Limited quantities of resources to meet unlimited wants.
Term
Opportunity Costs
Definition
most DESIRABLE alternative given up by choosing one course of action
Term
Economic System
Definition
Method used by a society to produce and distribute goods and services.
Term
Standard of Living
Definition
Level of economic prosperity in a country
Term
Traditional Economy
Definition
Economy that relies on habit, tradition, and customs to answer the 3 economic questions; 3rd world, low technology, and barter system
Term
Market Economy
Definition
Economy that relies on individuals to answer the 3 economic questions; based on exchange and trade in a market; associated with capitalism
Term
Command Economy
Definition
Economy that relies on the government to answer the 3 economic questions; centrally planned economics characterized by control and communism; associated with socialism
Term
Competition
Definition
Struggle amongst producers for the dollars of consumers; regulating force in a market economy.
Term
Free Enterprise
Definition
Economic system characterized by a private or corporate ownership of capital goods and private investments determined in a free market.
Term
Macroeconomics
Definition
Study of behavior and decision making in LARGE units; major businesses or entire countries
Term
Microeconomics
Definition
Study of behavior and decision making of small units; individuals, families, small businesses
Term
Work Ethic
Definition
A commitment to the value of work and purposeful activity.
Term
Externalities
Definition
Economic side effects of a good or service that generates benefits or costs to someone else
Term
Equilibrium
Definition
When supply and demand are equal and meet at a price (market equilibrium price)
Term
Disequilibrium
Definition
State of economy when quantity supplied is not equal to quantity demanded; results in excess supply or demand
Term
Excess Demand
Definition
Quantity demanded is greater than quantity supplied; causes increase in price through time
Term
Excess Supply
Definition
Quantity supplied is greater than quantity demanded; causes drop in price through time
Term
Minimum Wage
Definition
Minimum amount an employer can pay a worker for an hours worth of labor; price floor in the labor market
Term
Black Market
Definition
Conducting business without the regard for government controls on price, quantity, or legality
Term
Money
Definition
Anything that serves as a medium of exchange, a unit of account, or a store of value
Term
Barter System
Definition
Direct exchange of one set of goods or services for another
Term
Bank
Definition
An institution for receiving, storing, and lending money; private business with the goal of making a profit
Term
Gold Standard
Definition
Adopted in 1870s; system where currency is backed by gold; gave confidence to people that their money was stable
Term
Federal Reserve System
Definition
Passed by Congress in 1913; set up National and Central Banks; established member banks, federal reserve board, loans to banks in need, and printed 1st national currency
Term
Liquidity
Definition
Ability to be used or converted quickly into cash
Term
Investment
Definition
Act of redirecting resources from being consumed today so they can create benefits in the future
Term
Assets
Definition
Documents that prove you have invested money into a bank, stock, or some other investment
Term
Bonds
Definition
Loans/ I.O.U.s to he government or a business; paid back to investor with interest over even time intervals
Term
Stock
Definition
Ownership in a corporation; invest money in a company and become a partial owner
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