Types of Economies
A political theory derived from Karl Marx in which all property is publicly owned and each person works and is paid according to their abilities and needs
What is communism?
The value or benefit that must be given up to achieve something else
A social science that studies how people use scarce resources to satisfy their unlimited wants.
What is economics?
The person who was considered as the 'father of capitalism', was the first to write about economics.
Who was Adam Smith?
Goods and services that fulfill human needs
What is a consumer good?
Trade is done through bartering and not money, practices of the past determine production decisions within families
What is a traditional economy?
A point that lies on the production possibilities curve.
What is maximum efficiency?
An economic system that emphasized exporting as much as possible, while importing as little as possible to increase the nation's wealth.
What is mercantilism?
The person who believed that humanity would perish of famine due to overpopulation.
Who is Thomas Malthus?
What is a capital good?
Government-appointed planners make production decisions, consumers buy what is available.
What is a command economy?
The curve on the graph representing the maximum that can be produced.
What is frontier?
A term for hands off, trade should be unrestricted from government.
What is laissez-faire?
The philosopher who inspired the foundation of many communist regimes to overthrow capitalism.
Who was Karl Marx?
Resources such as land, minerals, water, labour, or capital.
What is tangible?
People produce what is bought, people buy what is cheap, government is more laid back.
What is a market economy?
The increase in the rate of extra outputs produced when all inputs are increased and none are held constant
What is the law of increasing returns?
The theory that business people who invest a percentage of their profits in new capital equipment increase the economy's stock of capital goods, thus ensuring economic growth and future prosperity.
What is the law of accumulation?
A smart investor of the late eighteenth century, an ambassador for free trade and the comparative advantage of trade.
Who was David Ricardo?
Resources such as knowledge, education, skills
What is intangible?
A market economy with a safety net
What is a mixed market economy?
The eventual decline in the rate of extra outputs produced that occurs when one input is held constant and the others are increased
What is the law of diminishing returns?
The accumulation of capital by business people requires more workers to operate the equipment, leading to higher wages, which in turn leads to better working conditions, lower mortality rates and an increase in population.
What is the law of population?
An english professor, known as the 'father of liberalism'. Had strong views on human rights.
Who was John Locke?
The cost of producing an item, expressed in the cost of another
What is relative cost?