Fundamentals
The study of how people choose from limited resources to meet their needs.
What is Economics?
A mixed economy with limited government intervention
What is free enterprise?
What will be produced
How it will be produced
Who will consume it
What the government decides?
Benefits most from a free market.
The government of a country must decide between increasing military spending and subsidizing wheat farmers.
What is a guns or butter issue?
The resources used to make goods and services.
What are the factors of production?
Economic decisions are based on custom.
What is a traditional economy?
The country with the most extreme example of a centrally planned economy.
What is North Korea?
Example of a Public Good.
What are public schools or any item built using public funds?
Using resources in such a way as to maximize the production of goods and services.
What is efficiency?
People who put together land, labor, and capital to create new businesses.
The measure of a nation's economic progress.
What is the gross domestic product?
The Soviet Union economy was an example of this type of economy.
Centrally Planned
A private organization that attempts to influence public officials to vote in ways that will benefit the group's members
What is an Interest Group?
Regulating force in the marketplace
What is competition?
Giving up one alternative for another.
What is a tradeoff?
Retirement income for the elderly
What is Social Security?
Requires revolutionary change
Government is authoritarian, not democratic
State ownership of factors of production
What is communism?
Children tend to have the same jobs as their parents did.
What is a characteristic of a traditional economy?
Any resources made by humans and used to create other goods and services.
What is Capital?
Manufacturers will not supply goods or services at current prices.
What is a shortage?
The most desirable alternative.
What is opportunity cost?
The public controls the economy.
What do socialists believe will create economic equality?
Americans maintain their high standard of living by constantly improving this item.
What is technology?
The doctrine that government should not intervene in the marketplace.
What is laissez faire?