The Terminator
good used in the production of other goods
capital good
a good that has a life expectancy of at least 3 years
durable good
intangible good produced by labor
revolutionized American mass production
Henry Ford
the multinational currency of the European Union
euro
good produced for consumption
consumer good
a good that has a life expectancy of less than 3 years
output
sum cost of all factors of production
total cost
wrote The Wealth of Nations
Adam Smith
the trait of doing quality work in an efficient manner
industriousness
the study of the choices that people make in the production, distribution, and consumption of goods
economics
the rising of prices caused by the lowering of the value of money
inflation
sum cost of all factors of production used to make one item
average cost
Father of Communism
Karl Marx
French group whose members were some of the earliest influential advocates of laissez-faire economics
Physiocrats
caused when production costs rise, causing businesses to raise their prices
cost-push inflation
total amount invested in the production of a good
input
when supply exceeds demand
surplus
gave the American people a “New Deal”
Franklin Roosevelt
the American system of mandatory social insurance
Social Security
the ability of an entity to produce a good more efficiently than other producers
absolute advantage
total amount of a good that is produced
output
when demand exceeds supply
shortage
solved the Diamond-Water Paradox
Karl Menger
Roosevelt’s package of increased governmental regulation adopted during the Great Depression
New Deal