Economics ch 2

general rules or principles guiding the production, distribution, and consumption of goods

the principal states of Europe followed the set of economic policies called what

the difference in value of the goods that a country sells abroad compared to those it purchases from other countries

taxes that governments apply only to imported goods

the establishment of colonies and extensive territories created to benefit their mother countries

who favors a "natural economy"

economic success, or the condition of enjoying many goods, including services

the value of all the things that people own

human activity which results in the creation of goods and services

four factors of productions plus the sometimes fifth

a system in which decisions involving the production, distribution, and consumption of goods are based upon custom, heredity, and caste

a system in which a centralized authority determines the production and distribution of goods and services as well as things like savings, investments, and prices

a system in which people are free to make their own economic choices

when a system combines a good measure of free enterprise in some areas with heavy state regulation in others

who seeks economic growth and stability, particularly price stability, rather than full employment

who believes full employment has a higher priority than economic growth and stability have

what are three example of economic stability

"Father of Economics"

Adam Smith wrote what book

the separation of work into individualized tasks

the division of tasks among workers allowed to production of goods by people doing the jobs they did best

the first factor of production such as land and other raw materials

a measure of how efficiently resources are employed

freedom of enterprise and competition in a market environment and limited government

illustrates how resources and products move through the market