Terminator 2: Judgement Day
the relationship between a good’s price and the amount that people are willing to buy
demand
the relationship between a good’s price and the amount that producers are willing to make available
supply
3 basic components of capitalism
limited government, freedom of enterprise and competition, private property
stated that buyers and sellers in a market are guided by “an invisible hand”
Adam Smith
controls the money supply in the US
Federal Reserve
caused when the demand is greater than the supply, causing prices to rise
any system for the production, distribution, and consumption of goods
economy
Relationship between demand and price
inverted
wrote The Communist Manifest and Das Kapital
Karl Marx
4 factors of production
natural resources, labor, capital, and entrepreneurship
large, complex organization composed of appointed officials and numerous departments
bureaucracy
mechanism that allows people to exchange goods
market
Relationship between supply and price
direct
stated that “Bad money drives out good.”
Sir Thomas Gresham
sometimes considered a fifth factor of production
information
the ability of an entity to produce a good at an opportunity cost that is lower than other producers
comparative advantage
money that is not backed by anything other than a government’s claim that it is worth something
fiat money
Give 2 factors that can affect demand
tastes and preferences, income, population, prices of related goods, and consumer expectations
rejected the belief that demand creates its own supply
John Maynard Keynes
meets at least once a year to discuss national and international problems and recommend plans of action
General Assembly
the commitment of resources to a purpose expected to provide future gain
investment
allows a country to produce those goods in which it has absolute or comparative advantage
geographic specialization
Give 2 factors that can affect supply
technology, resource prices, prices of related goods, number of sellers, producer expectations, and government taxes, subsidies, and regulations
founder of the Austrian school of economics
Karl Menger
global organization that consists of the General Assembly, Security Council, and the Economic and Social Council
United Nations