Terminator 3: Rise of the Machines
separates the work to be done into individualized tasks
division of labor
anything that is generally accepted as a means of payment
money
fixing a good’s price below equilibrium price, often causes shortages
price ceiling
wrote Physiocracy
Pierre Samuel du Pont de Nemours
originally established to monitor currency exchange
IMF (International Monetary Fund)
the study of international and national economies and how these economies are affected by wide-scale choices and public policies
macroeconomics
used to determine how much of a good to buy or sell
market signal
fixing a good’s price above equilibrium price, often cause surpluses
price floor
advocated the theory of monetarism
Milton Friedman
also known as the World Bank
IBRD (International Bank of Reconstruction and Development
the study of specific components within a major economy
microeconomics
a system that allows banks to essentially create money as they are not required to hold 100% of their deposits in reserve
fractional reserve banking
3 components of mass production
division of labor, automatic conveyance, standardized parts
“prophet of doom” that erroneously claimed that famine was inevitable since he believed the population was growing at a much faster rate than the amount of available food
Thomas Robert Malthus
deals with the trade rules that have been established among the world's countries
WTO (World Trade Organization)
the value of the best alternative that is foregone when a different alternative is taken
opportunity cost
when the division of labor is carried past the point of maximum efficiency
overspecialization
3 factors that determine investment growth
time, rate of return, amount invested
advocated the theory of comparative advantage
David Ricardo
forerunner to the EU, instituted to establish free trade among the capitalist nations of Europe
EEC (European Economic Community)
a policy that forces a consumer to buy certain products before he can buy the ones he really wants
tying contract
how much a good is worth, based on utility and scarcity
value
2 primary responsibilities of government
rewarding good and punishing evil
implemented economic policies based on supply-side economics
Ronald Reagan
4 parts of the business cycle
expansion (boom), peak, recession, and trough