Economics MVA

  1. Factors of production
    resources of land, labor, capital, and entrepreneurship used to produce goods and services
  2. Scarcity
    basic problem of econ, people have unlimited wants that exceed resources. It always exists.
  3. Adam Smith
    Father of Capitalism
  4. 6 main characteristics of the American economy
    • -little or no gov control
    • - freedom of enterprise
    • -freedom of choice
    • -private property
    • -profit incentive
    • -competition
  5. trade-offs
    exchanging one thing for use of another; cost of it is what you give up in order to get it
  6. Microeconomics
    Branch of economic theory that deals with behavior and decision making by small units such as individuals and firms
  7. Macroeconomics
    branch of economic theory dealing with the economy as a whole and decision making by large units such as governments
  8. Traditional economy
    decisions based on customs and beliefs that have been handed down from generation to generation.
  9. Command system
    Governmanet controls the factors of production and makes all decisions about their use
  10. Market system
    individuals own the factors of production and make economic decisions through free interaction while looking out for their own and their families’ best interest
  11. Mixed System
    combines characteristics of more than one type of economy
  12. 3 Basic Questions
    What should be produced? How should it be produced? For whom should it be produced for?
  13. Consumer
    any person or group that buys or uses goods and services to satisfy personal needs and wants; needs to have the money and time to purchase items to be a consumer
  14. Consumerism
    movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers
  15. Credit
    Receipt of money either directly or indirectly to buy goods and services in the present with the promise to pay from them in the future.
  16. Credit score
    • Good Credit = 720 and higher.
    • Bad Credit = 620 and below
  17. Credit Bureaus
    Private business  that investigates a person to determine the risk involved in lending money to that person
  18. 3 Basic buying principals
    • 1. Gather info
    • 2. using advertising wisely
    • 3. comparison shopping
  19. Brand name
    word, pic, or logo on a product that helps consumers distinguish it from similar products
  20. Generic brand
    General name for a product rather than a specific brand name given by the manufacturer
  21. Rights as a Consumer
    • 1 Right to safety
    • 2. right to be informed
    • 3. right to choose
    • 4. Right to be heard
    • 5. Right to redress Know
  22. Durable good
    Good that lasts longer than 3 years
  23. Principal
    amount of money originally loaned
  24. Interest
    Amount of money borrower must pay for use of money
  25. Credit Companies
    Equifax, Experian, and Transunion. Records financial transactions
  26. Law of Demand
    Economic rule stating that the quantity demanded and price move in opposite directions
  27. Buying or renting a home
    • - if you choose to buy a house, you will probably need to obtain a mortgage, which involves a cash down payment, monthly installments, and interests, plus money for closing costs and points. 
    • - most renters pay a security deposit and sign a lease that protects their rights as well as lists their responsibility.
  28. law of supply
    economic rule stating that price and quantity supplied move in the same direction
  29. Diminishing Marginal Utility
    second time will never bring as much satisfaction as the first
  30. Franchise
    Uses one name but multiple people in control and selling
  31. Civilian Labor Force
    Total number of ppl 16 years old or older who are either employed or actively seeking work
  32. Blue-collar
    category of workers employed in crafts, manufacturing, and non farm labor
  33. White-collar
    category of workers employed in offices, sales, ore professional positions
  34. Service workers
    people who provide services directly to individuals
  35. Unskilled workers
    people whose job require no specialized training
  36. Semiskilled workers
    people whose jobs require some training often using modern technology
  37. Skilled workers
    people who have learned a trade or craft either through a vocational school or as an apprentice to an experienced worker
  38. Professional
    highly educated individuals with college degrees and usually additional education or training
  39. GDP
    • - Gross Domestic Product
    • - total dollar value of all final goods and services produced in a nation in a single year
  40. inflation
    Prolonged rise in the general price level of goods and services
  41. Monopoly
    market situation in which a single supplier makes up an entire industry for a good or service that has no close substitutes
  42. Competition
    Rivalry among producers or sellers of similar goods and services to win more business
  43. money
    anything customarily used as a medium of exchange, a unit of accounting and as store of value
  44. Labor Unions
    association of workers organized to improve wages and working conditions for its members
  45. Taxes
    A fee charged (levied) by a government on a product, income, or activity.
  46. Characteristics of money
    durable, portable, divisible, stable in value, scarce, and accepted.
  47. Importance of World Trade
    The World Trade Organization (WTO) helps to facilitate global trade. It is the major multilateral forum for creating agreements and settling trade disputes among governments.
Card Set
Economics MVA
economics test 2nd semester