Terms
Unlimited wants and needs but limited resources
Scarcity
Author of the Wealth of Nations
Adam Smith
What are the factors of production
Land, Labor, Capital
What is a key aspect of globalization
1. Economic integration
2. Technological advancements
3. Political cooperation
4. Cultural exchange
Choosing between buying a new phone or saving for a car
Trade off
Factors that motivate or influence behavior
Incentives
Term used by Adam Smith to describe self interest
The Invisible Hand
what are the two capitals?
Physical and Human
aid a government gives an industry or business so that the price of a good or service is low or competitive.
Subsidies
Recycling to get more money is an example of
Financial Incentives
The process of starting and running a business, typically involving financial risks, in hopes of profit
Entrepreneurship
Karl Marx believed the value of something is determined by how much ___ is involved
Labor
What factor of production is a workers ability to make a heart in a coffee
Human Capital
A law that the government places to control how a business operates
Loss
Considering the effects of small changes in behavior or decisions
Marginal thinking
Marx proposed the the value of profit- labor = what?
Surplus Value
Who is responsible for starting the factor of production
Entrepreneur
The government places this on imported goods to lower the price of domestic goods
Tariffs
At Santa Clara High School looking at your attendance record is an example of what type economics
Microeconomics
The positive or negative effects of an economic activity on a third party
Externalities
What type of economy does the USA have?
Mixed economy
What factor of production does money fall under?
It does not
What is the negative affect of globalization regarding culture called
Cultural Homogenization
Every society, government, and business must ask itself what
3 economic questions