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Definition
| labor, machinery, buildings, and natural resources used to make outputs |
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Definition
| goods and services that consumers want to acquire |
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| the sum of the money values of all FINAL goods and services produced in the domestic economy within the year |
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Definition
| U.S. combines private and public ownerships |
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Definition
| increasingly female & decreasingly teenagers |
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Term
| The Fundamental Economic Problem |
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Definition
| How to best manage society's resources despite their scarcity. |
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Term
| Principle of Increasing Costs |
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Definition
| as production of a good expands, the opportunity cost of producing another unit generally increases |
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Term
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Definition
| wastes none of available sources; operates on Production Possibilities Frontier |
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Definition
| the value of the next best alternative |
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Term
| Production Possibilities Frontier |
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Definition
| slopes downward & to the right |
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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
| sustained increase in price levels |
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Term
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Definition
period of time where total output of the economy declines
(leftward shift in the AD) |
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Term
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Definition
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Term
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Definition
| valuing outputs of different years at common prices |
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Term
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Definition
| government spending and taxation; steers aggregate demand |
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Term
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Definition
| inflation while economy is slowly growing or experiencing a recession |
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Term
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Definition
| deals with Inflation, Unemployment, Recessions, and Economic Growth |
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Term
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Definition
| actions taken by Federal Reserve to influence aggregate demand by changing interest rates |
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Term
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Definition
| the *** produced IF labor force was fully employed |
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Term
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Definition
| relationship between economy's inputs & outputs |
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Term
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Definition
| Total Output / Total Hours |
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Term
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Definition
| Hours of Work X Labor Productivity |
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Term
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Definition
| normal movement from one job to another |
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Term
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Definition
| workers characteristics don't match employers' requirements |
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Term
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Definition
| number of jobless people as a percentage |
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Term
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Definition
| adults who have a job, but give up looking |
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Term
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Definition
| anyone able and willing to work, is able to find a job |
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Term
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Definition
| government program that replaces some wages lost by the people laid off |
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Term
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Definition
| People WiTH jobs, WORKiNG |
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Term
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Definition
| LAiD OFF, LOOKiNG for work |
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Term
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Definition
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Term
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Definition
| Real Rate of Interest + Expected Rate of Inflation |
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Term
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Definition
| the total amount that all consumers, business firms, government agencies, and foreigners spend on final goods and services |
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Term
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Definition
| total amount spent by ________ on newly produced goods and services |
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Term
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Definition
| the sum of the expenditures spent by business firms on new plant, equipment, software and households on new homes |
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Term
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Definition
| refer to goods (such as airplanes and paper clips) and services (such as school teaching and police protection) purchased by all levels of the ________ |
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Definition
| Indicates difference between what we sell to foreigners and what we buy from them |
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Term
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Definition
| sum of the incomes that all individuals in the economy earn in the form of wages, interest, rents, and profits. It excludes government transfer payments and is calculated before any tax deductions are taken from income taxes |
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Term
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Definition
| sum of the incomes of all individuals in the economy after all taxes have been deducted and all transfer payments have been added |
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Term
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Definition
sums of money that the gov gives certain individuals as outright grants rathe than as payments for service rendered to employers.
ex.) Social Security & Unemployment Benefits |
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Term
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Definition
| shows the relationship between total consumer expenditures and total disposable income in the economy |
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Term
| Marginal Propensity to Consume (MPC) |
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Definition
| rate of the change in consumption relative to the change in disposable income that produces the change in consumption |
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Term
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Definition
| refers to a situation in which neither consumers nor firms have any incentive to change their behavior |
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Term
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Definition
| relationship between national income (GDP) and total spending |
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Term
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Definition
| part of investment spending that rises when GDP rises and falls when GDP falls. |
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Term
| Income-Expenditure Diagram |
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Definition
| plots total real expenditure against real income; the 45 degree line marks off points where income and expenditure are equal |
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Term
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Definition
| shows the quantity of domestic product that is demanded at each possible value of the price level |
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Term
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Definition
| the amount by which the equilibrium level of real GDP falls short of potential GDP |
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Term
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Definition
| the amount by which equilibrium real GDP exceeds the full-employment level of GDP |
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Term
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Definition
| the ratio of the change in Equilibrium GDP (Y) divided by the original change in spending that causes the change in GDP |
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Term
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Definition
| an advanced culture with important inventions |
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Term
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Definition
| A source of learning & innovation |
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Term
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Definition
| emerging from centuries of stagnation following the fall of the Roman Empire |
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Definition
| the Original "Garden of Eden" |
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Term
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Definition
| where math was developed, written lang. first used, wheel was invented, cities & codes of law developed |
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Term
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Definition
useful plant and animal species
geography & ecology
diffusion of ideas was easy
large populations & geographic areas |
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Term
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Definition
| said that W<-->E axis for crops was a big advantage for Eurasia, unlike N<-->S axis for Americas & Africa |
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Term
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Definition
| trade disappeared, cities disappeared, spread of Christianity, Era of war & invasions |
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Term
| Rise of Capitalism: 1450-1625 |
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Definition
A commercial revoultion with changes in:
Printing (Gutenberg)
Science (Copernicus & Galileo)
Navigation & Shipbuilding |
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Term
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Definition
| began in England 1750; spread to Germany, France, and the US quickly |
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Term
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Definition
| Freedom of Authority from the Church, reading Bible in common language, new thought and science were triggered, (Germany, Netherlands, & England) where the industrial revolution began |
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Definition
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| repression of new ideas, banning foreign books & education, fell behind in technology |
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Term
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Definition
italian experimental scientist; showed that earth must revolve around the sun.
Published in Italian, NOT LATIN
Condemned by Church for heresy |
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Definition
| exploitation of the New World |
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Term
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Definition
| Government control of trade |
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Definition
| slaves captured/bought in Africa, shipped to Caribbean to work on sugar plantations, slaves were traded for sugar which in turn was traded for manufactured goods |
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