The Basic Principles
Factors of Production
Economic Systems
Supply and Demand
The Economy and $
100
All things are limited, in order to get something you must always give something up
What is the law of scarcity?
100
Trees, Minerals, and oil are examples of this
What is land?
100
This economist spoke of an invisible hand that guides producers and consumers
Who is Adam Smith?
100
The price goes up if this went up
What is demand?
100
The total value of all final goods and services produced in a country in a particular year.
What is GDP?
200
Luxury items like sports cars, fancy clothes, and ipods
What are wants?
200
secretaries, accountants, and lawyers are examples of this
What is labor?
200
This economist would support an economic stimulus plan
Who is Keynes?
200
The price goes down if this went up
What is supply?
200
Spending by ordinary consumers
What is consumption?
300
Clothes, Food, and Electricity are examples of these
What is a "need"?
300
This factor improves the productivity of labor
What is capital?
300
This economist warned of a two-class society
Who is Karl Marx?
300
Companies keep this low, in order to keep the price high
What is supply?
300
This is represented as (X-M)
What are exports-imports
400
The government's sacrfice of domestic spending for military spending
What is opportunity cost?
400
This factor takes on the risk of organizing the others
What is entrepreneurship?
400
This U.S. President adopted the views of Keynes during the Great Depression
Who is FDR?
400
Companies spend lots of money on advertising their products in order to increase this
What is demand?
400
A "weak dollar" leads to an increase in this GDP component
What are exports
500
The amount of money that is above the percentage a bank is required to keep on hand.
What is excess reserve?
500
"To compose, create, or bring out by intellectual or physical effort"
What is to produce?
500
This is the french phrase used to describe a market economy
What is laissez-faire?
500
this is the point on the graph where supply and demand meet
What is equilibrium?
500
Haircuts, Bread, Cruise missiles, New factories, and cars are these
What are final products?
M
e
n
u