Definitions
Markets
How much you can produce in a certain time is known as what?
Productivity
Who invented the idea of the modern Market Economy?
Adam Smith
What role did cigarettes serve in the POW Camp, showing a market economy developing?
Currency
What is the name of Adam Smith's book about markets?
The Wealth of Nations
What you sacrifice to get something is known as what?
Opportunity Cost
A product produced in a domestic country and sold to a foreign country
Export
According to Adam Smith, what motivates people in the market?
Self-Interest
SNAP, WIC, Medicaid
What are my cats names?
Kaya and Oliver
The ability of one group or nation to produce a good at a lower resource cost than another person or nation.
Absolute Advantage
What group is hyper aware of prices and products and will shift resources around to meet product demand?
Entrepreneurs
What are the risks associated with a centrally planned economy?(Need 2)
Too much information for one person to remember/deal with. Can lead to corruption
What institution(s) experienced a market failure in 2008?
Banks
When a domestic firm shifts its production to another country.
Outsourcing
This increases the profitability of inventions, encouraging firms to develop new products and production processes.
Patents
What influences a free market economy in an unseen way?
The Invisible Hand
Why do market failures occur?
When a market does not produce the most efficient outcome.
What book, written about corruption in the government and the meat industry, changed how the government regulated the food industry?
The Jungle
Rules that provide potential investors with reliable information about the financial performance of a firm.
Accounting
An economy in which a government bureaucracy decides how much of each good to produce, how to produce the good, and who gets the good is known as what?
Name the 3 aspects of Division of Labor
Continuity, Repetition, and Innovation
Name 3 of the 4 causes of market failure.
Pollution, Public Goods, Imperfect Information, Imperfect Competition
What kind of law does the government use to ensure consumer goods are safe/reliable?
Tort Law