Chapter 4
Scarce goods that directly satisfy a person's preferences
What are Consumer Goods?
A system in which resources are owned by people outside of the government.
What is Private Property?
A good that is accepted by everyone in the economy.
What is Money?
This greatly increases the productivity of labor
What is Specializaton?
The owner of all things.
Who is God?
That which makes up a Capital Good.
What are Natural Resouces and Labor?
What is Market Economy?
Trading that occurs when people swap goods that they directly value
What is Direct Exchange?
The amount of outpot a worker can produce in a certain period of time.
What is productivity (of labor)?
The role of man on the earth.
What is a Steward?
Physical items or services that indirectly satisfy preferences.
What are Producer Goods?
Social relationships and practices, which allow people to interact with each other.
What is an Institution?
The terms of trade, meaning how many units of one item are given up to acquire a unit of a different term.
What is Price?
Occurs when a person can produce more in a particular task, compared to someone else.
What is Absolute Advantage?
This biblical text speaks of God's ownership of all things.
What is Psalm 24:1-2?
To use resources being mindful of their scarcity.
What is to Economize?
A system that allows private citizens to legally own resources, but in which government officials lay down rules that limit the choices o the legal owners can make with their property.
What is a Mixed Economy?
Trading that occurs when at least one party accepts an item that he doesn't intend to use but intends to trade.
What is Indirect Exchange?
When a person has the relative superiorty in a particular take, when taking all other tasks into account.
What is the Comparative Advantage?
Economics is a branch of this study.
What is moral philosophy?
The subjective value placed on the next-best alternative that must be sacrificed in any choice.
What is Opportunity Cost
The person who has the legal authority to decide how a particular unit or resource or good shall be used?
Who is the Owner?
A stable situation in which there are no further gains from trade.
What is Equilibrium?
Answer the Question:Why is trade important for the division of labor?
Trade is important becuase the division of labor only works when people trade with one anther.
The inexorable laws that God has set up for loving Him and our neighbor.
What is the Moral Law?