ECON 101

Philosopher who beleives in a communist economic system

Philosopher who beleives in a capitalistic economic system

The study of how to best allocate scarce resources among competing uses

The most desired good and services that are forgone in order to obtain something else (The next best choice)

The 4 Factors of Production

Lack of enough resources to satisfy all desired uses of those resources

The 3 Basic Economic Questions

The alternative combinations of good and services that could be produced in a given time period with all available resources and technology

Expenditures on new plant and equipment in a given time period, plus changes in business inventories (but not money)

An increase in output(real GDP) and an expansion of production possibilities

Using the market to decide ecomic decisions (The Invisible Hand)

Leaving the market alone to make basic economic decisions

An economy that uses both the market mechanism and the government to make economic decisions

When the market mechanism fails to provide optimal outcomes

Costs or Benefits to a third party as a biproduct of a market
(Pollution)

Government intervention that fails to improve economic outcomes

Study of the economy as a whole

The study of individual behaviours in the economy

The assumption that nothing else changes

The total value of goods and services produced within a nation

Total GDP devided by total population

Payments to individuals with no exchange

Goods and services sold to foreign buyers

Goods and services purchased from foriegn sources

Production processes that use high capital instead of high labor

The knowledge and skills posessed by the workforce

When a firm produces an entire market of a particular product or service

The way total personal income is divided up among income classes

A tax stystem in which tax rates rie as incomes rise

A tax system in which tax rates fall as incomes rise