Term
LG1- Explain basic economics
Define Economics |
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Definition
| The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various individuals |
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Term
LG1- Explain basic economics
Define macroeconomics |
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Definition
| The part of economics study that looks at the operation of a nation's economy as a whole |
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Term
LG1- Explain basic economics
Define microeconomics |
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Definition
| The part of economics study that looks at the behavior of people and organizations in particular markets |
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Term
LG1- Explain basic economics
Resource development |
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Definition
| The study of how to increase resources and to create the conditions that will make better use of those resources. |
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Term
LG1- Explain basic economics
Define invisible hand |
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Definition
| A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all. |
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Term
LG2- Explain what capitalism is and how free markets work
Define Capitalism |
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Definition
| An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit. |
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Term
LG2- Explain what capitalism is and how free markets work
State the four basic rights under free-market capitalism |
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Definition
| The right to own private property. The right to own a business and keep all that business' profit. The right to freedom of competition. The right to freedom of choice. |
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Term
LG2- Explain what capitalism is and how free markets work
Define Supply |
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Definition
| The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time |
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Term
LG2- Explain what capitalism is and how free markets work
Define demand |
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Definition
| The quantity of products that people are willing to buy at different prices at a specific time. |
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Term
LG2- Explain what capitalism is and how free markets work
Define market price |
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Definition
| The price determined by supply and demand. |
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Term
LG2- Explain what capitalism is and how free markets work
Define perfect competition |
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Definition
| The degree of competition in which there are many sellers in a market and none is large enough to dictate the price of the product. |
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Term
LG2- Explain what capitalism is and how free markets work
Define monopolistic competition |
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Definition
| The degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different. |
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Term
LG2- Explain what capitalism is and how free markets work
Define olipology |
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Definition
| A degree of competition in which just a few sellers dominate the market, usually because the investment needed is very big. |
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Term
LG2- Explain what capitalism is and how free markets work
Define monopoly |
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Definition
| A degree of competition in which only one seller controls the total supply of a product or service, and sets the price. |
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Term
LG3- Compare socialism and communism
Define socialism |
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Definition
| An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people. |
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Term
LG3- Compare socialism and communism
State the benefits and disadvantages of socialism(define brain drain) |
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Definition
Benefits: strives for social equality, free education, free healthcare, free child care (usually) longer vacations, work fewer hours and have more employment benefits.
Disadvantages: Takes away business people's incentives. Brain drain: the loss of the best people to other countries. |
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Term
LG3- Compare socialism and communism
Define communism+ disadvantages |
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Definition
An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production.
Disadvantages: prices dont reflect supply and demand, so government doesnt know what to produce, hence shortages of basic products. Does not inspire business people. |
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Term
LG4- Analyze the trend toward mixed economies
Define Free-market economies |
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Definition
| Economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows(capitalism) |
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Term
LG4- Analyze the trend toward mixed economies
Define command economies. |
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Definition
| Economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow. |
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Term
LG4- Analyze the trend toward mixed economies
Define mixed economies |
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Definition
| Economic systems in which some allocation of resources is made by the market and some by the government. |
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Term
LG5- Describe the economic system of the United States
Define GDP |
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Definition
| GDP- Gross Domestic Product. The total value of final goods and services produced in a country in a given year. Influenced by productivity of workers. US's GDP is $14 trillion. |
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Term
LG5- Describe the economic system of the United States
Define the Unemployment Rate |
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Definition
| The number of civillians at least 16 years old who are unemployed and tried to find a job withing the prior four weeks. Four types of unemployment: frictional (people who quir), stuctural(caused by restructuring of firms), Cyclical(recession, most serious), seasonal(demand for labor varies within the year) |
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Term
LG5- Describe the economic system of the United States
Define Inflation, disinflation, deflation and stagflation |
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Definition
Inflation: A general rise in the prices of goods and services over time. Disinflation: a situation where price increases are slowing
Deflation: A situation where prices are declining. Stagflation: A situation when the economy is slowing but prices are going up anyhow |
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Term
LG5- Describe the economic system of the United States
Define Consumer Price Index(CPI) |
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Definition
| CPI are monthly statistics that measure the pace of inflation or deflation. Core inflation is the CPI minus the food and energy costs. |
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Term
LG5- Describe the economic system of the United States
Define the Producer Price Index(PPI) |
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Definition
| An index that measures prices at wholesale level. |
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Term
LG5- Describe the economic system of the United States
Define Business cycle and its four phases |
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Definition
Business cycle:The periodic rises and falls that occur in economies over time.
1-An economic boom 2- A recession (two or more consecutive quarters of decline in the GDP) 3- A depression (a severe recession, usually accompanied by deflation) 4- A recovery |
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Term
LG6- Contrast fiscal policy and monetary policy and explain how each affects the economy
Define fiscal policy. |
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Definition
| Fiscal policy consists of government efforts to keep the economy stable by increasing or decreasing taxes or government spending. |
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Term
LG6- Contrast fiscal policy and monetary policy and explain how each affects the economy
Keynesian economic theory |
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Definition
| The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession. |
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Term
LG6- Contrast fiscal policy and monetary policy and explain how each affects the economy
Define monetary policy and explain its importance |
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Definition
| The management of the money supply and interest rates by the Federal Reserve. When unemployment gets too high, FED may lower interest rates and allow to borrow more money. |
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Term
LG3- Compare socialism and communism
State the benefits and disadvantages of socialism(define brain drain) |
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Definition
Benefits: strives for social equality, free education, free healthcare, free child care (usually) longer vacations, work fewer hours and have more employment benefits.
Disadvantages: Takes away business people's incentives. Brain drain: the loss of the best people to other countries. |
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Term
LG3- Compare socialism and communism
Define communism+ disadvantages |
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Definition
An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production.
Disadvantages: prices dont reflect supply and demand, so government doesnt know what to produce, hence shortages of basic products. Does not inspire business people. |
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Term
LG4- Analyze the trend toward mixed economies
Define Free-market economies |
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Definition
| Economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows(capitalism) |
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Term
LG4- Analyze the trend toward mixed economies
Define command economies. |
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Definition
| Economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow. |
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Term
LG4- Analyze the trend toward mixed economies
Define mixed economies |
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Definition
| Economic systems in which some allocation of resources is made by the market and some by the government. |
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Term
LG5- Describe the economic system of the United States
Define GDP |
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Definition
| GDP- Gross Domestic Product. The total value of final goods and services produced in a country in a given year. Influenced by productivity of workers. US's GDP is $14 trillion. |
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Term
LG5- Describe the economic system of the United States
Define the Unemployment Rate |
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Definition
| The number of civillians at least 16 years old who are unemployed and tried to find a job withing the prior four weeks. Four types of unemployment: frictional (people who quir), stuctural(caused by restructuring of firms), Cyclical(recession, most serious), seasonal(demand for labor varies within the year) |
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Term
LG5- Describe the economic system of the United States
Define Inflation, disinflation, deflation and stagflation |
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Definition
Inflation: A general rise in the prices of goods and services over time. Disinflation: a situation where price increases are slowing
Deflation: A situation where prices are declining. Stagflation: A situation when the economy is slowing but prices are going up anyhow |
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Term
LG5- Describe the economic system of the United States
Define Consumer Price Index(CPI) |
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Definition
| CPI are monthly statistics that measure the pace of inflation or deflation. Core inflation is the CPI minus the food and energy costs. |
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Term
LG5- Describe the economic system of the United States
Define the Producer Price Index(PPI) |
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Definition
| An index that measures prices at wholesale level. |
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Term
LG5- Describe the economic system of the United States
Define Business cycle and its four phases |
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Definition
Business cycle:The periodic rises and falls that occur in economies over time.
1-An economic boom 2- A recession (two or more consecutive quarters of decline in the GDP) 3- A depression (a severe recession, usually accompanied by deflation) 4- A recovery |
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Term
LG6- Contrast fiscal policy and monetary policy and explain how each affects the economy
Define fiscal policy. |
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Definition
| Fiscal policy consists of government efforts to keep the economy stable by increasing or decreasing taxes or government spending. |
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Term
LG6- Contrast fiscal policy and monetary policy and explain how each affects the economy
Keynesian economic theory |
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Definition
| The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession. |
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Term
LG6- Contrast fiscal policy and monetary policy and explain how each affects the economy
Define monetary policy and explain its importance |
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Definition
| The management of the money supply and interest rates by the Federal Reserve. When unemployment gets too high, FED may lower interest rates and allow to borrow more money. |
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