Name that term
Total value of a business minus any liabilities
equity
The free market economy owes its proficiency to limited government, freedom of enterprise and competition, and _______________.
property rights
type of economy is based on custom, heredity and caste
traditional economy
Diamond-Water Paradox
Carl Menger
blocked entry to the market
monopoly
amount of satisfaction resulting from a one-unit increase of a product
marginal utility
_______________ is the study of specific components within a major economy.
Microeconomics
type of good is directly related to a consumer's income?
normal good
invisible hand
Adam Smith
significant entry barriers
oligopoly
forces the consumer to buy certain products before he is able to buy what he really wants
tying contract
Mass production is based on division of labor, _______________, and automatic conveyance.
standardized parts
type of economic system is controlled by a central authority?
command economy
Physiocracy
(bonus 100: what type of economy was favored in this book?)Pierre Samuel du Pont
(natural economy)
no close substitutes for firm's products
monopoly
excess of the total revenue paid by buyers for goods over the seller's total expense of producing those goods
profit
A better standard of living is made possible for everyone is a prosperous society because of _______________.
competition
type of good is a truck used by a florist to deliver flowers?
capital good
comparative advantage
David Ricardo
large number of independent buyers and sellers
perfect competition
total amount of satisfaction received from a particular amount of some good
total utility
_______________ is the exchange of goods in the absence of governmental restrictions or penalties.
free trade
type of good does not last more that three years?
nondurable good
gunpowder entrepreneur
E. I. du Pont
large number of firms
monopolistic competition