Random Econ
The Economic concept illustrated: A business spends money on new computers, so it can't afford new office furniture.
Opportunity Costs
A young worker is starting her first job at a research lab. She spent four years in college getting a degree in biology to prepare her for the career she wanted. Then, she applied for a job at the lab and negotiated a good salary for herself after she was hired.
Market Economy
Economist most supported the idea that economies work best when governments avoid interfering with private businesses.
Adam Smith
The way a society manages the distribution of goods and services that people buy and sell.
economy
Germany
__________ is the measure of economic output achieved with certain input.
Productivity
Economic System example: A young worker is learning how to sew clothing from her mother and grandmother, who both learned the same sewing technique from their parents. Even though the worker is not interested in sewing, she is pressured by her family and community to take this job.
Traditional Economy
Economist most supported the idea that poor workers would eventually overthrow market economies and establish command economies.
Karl Marx
The rise and fall in production output of goods and services in an economy over time.
Business Cycle
The best marvel superhero... according to Mrs. James.
Spiderman
A system of currency exchange in which the value of different currencies is set at a specific value in relation to each other or to the value of gold.
fixed exchange rate
A young worker has started working at a factory. She was assigned this job by the government and can't choose to quit. Sometimes, the factory is forced to shift production from cars to trains or airplanes, depending on what the government decides should be made.
Command economy
Economist most supported the idea that governments should spend money to help fuel economic growth during periods of economic crisis.
John Maynard Keynes
A startup company produces luxury furniture. It purchases wood from a local lumber mill and turns the wood into tables, chairs, and desks. Once the furniture is finished, trucks take it to a local mall where it is sold at a specialty store. Customers come from all over the state to buy new pieces of furniture that arrive each month.
The customers who shop at the mall represent _________ in the circular flow model.
households
Mrs. James husband is from this country.
Nigeria
The total value of all goods and services produced in a country in a year.
gross income
gross domestic product
(GDP)
An economic system in which individuals, businesses, and government all participate in economic decision making.
mixed economy
A French economist who argued in favor of a free market economy with little government interference.
Jean-Baptiste Say
A startup company produces luxury furniture. It purchases wood from a local lumber mill and turns the wood into tables, chairs, and desks. Once the furniture is finished, trucks take it to a local mall where it is sold at a specialty store. Customers come from all over the state to buy new pieces of furniture that arrive each month.
The specialty store in the mall represents _________ market in the circular flow model.
product
Mrs. James favorite color.
Red
The knowledge and skills individuals have acquired over their lifetimes that they can use to produce goods and provide services.
human capital
An increase in prices combined with a fall in the value of money.
inflation
An American economist who is best known for the idea of supply-side economics.
George Gilder
A startup company produces luxury furniture. It purchases wood from a local lumber mill and turns the wood into tables, chairs, and desks. Once the furniture is finished, trucks take it to a local mall where it is sold at a specialty store. Customers come from all over the state to buy new pieces of furniture that arrive each month.
The lumber mill represents _________ market in the circular flow model.
resource
Mrs. James number 1 study tip!
Sleep