Factors of Production
The study of how a society provides for the needs and wants of people.
Economics
Economy built on habits, traditions, and rituals answer the basic questions of what, how, and for whom.
Traditional Economy
This term is defined as output per worker hour that is measured over a defined period of time (usually a year)
Productivity
The four phases of the business cycle are.
Prosperity, Recession, Depression, Recovery
When the demand for a good or service is greater than the availability of the good or service
Scarcity
The government controls the factors of production in this economic structure.
Command Economy
A percentage of ownership in a company.
Share
The stock market crash on October 29, 1929 marked the beginning of the Great Depression. This day is known as ___________ .
Black Tuesday
2 parts:
1. All of the possible choices you gave up
2. the one most valuable choice you gave up
1. Trade-off
2. Opportunity Cost
When making economic decisions governments ask these 3 questions.
•What to produce?
•How to produce?
•For whom to produce?
What are the 3 goals of macroeconomics?
Increase _______________
Decrease ________________
Maintain __________________
Increase productivity
Decrease unemployment
Maintain stable prices
When a recession in one industry leads to a recession in other industries.
The Ripple Effect
Of the factors of production, anything that is manufactured in order to be used in the production of goods and services is called....
Capital
"Laissez-faire or the invisible hand -- let the market do its thing! It will always correct itself." Businesses and consumers make decisions.
Market Economy
How is GDP per capita calculated?
GDP divided by population
The use of government spending and tax policies to influence economic conditions.
Fiscal Policy
What is THE question economics is trying to answer?
How to satisfy unlimited wants with limited resources.
Productivity is high in a market/mixed economy. This term occurs when employees, businesses, or economies focus intently on unique products or services.
Specialization
Which country has the highest GDP per capita?
Luxembourg
What is another name for economic recovery?
Expansion