Producing Goods
The term for goods or money used to produce other goods and services.
What is capital?
As price increases, quantity supplied increases.
What is the Law of Supply?
In capitalism, this is the motivator.
What is Profit?
The difference between total revenue and total costs in production., minus that initial investment cost too of course.
What is profit?
The economic term for how people make decisions in a world where resources are limited.
This is the ideal amount of your statement balance to pay to avoid paying any interest.
What is a statement balance?
Land, labor, capital, and entrepreneurship are the main parts of this in economics.
What are the four factors of production?
The Price goes up and the quantity demanded goes down.
What is the Law of Demand
A gallon of milk cost 36 cents in 1913 and $3.53 in 2013, illustrating this phenomenon.
What is inflation?
Cash and assets that can immediately be used for emergency/unseen obligations.
What are liquid assets?
He wrote Wealth of Nations, laying out the first basic philosophy of the market economic system.
Who is Adam Smith?
Financial expert Dave Ramsey recommends investing this percentage of your take-home pay for retirement.
What is 15%?
Cash, bank deposits, and easily sold investments.
What is liquid or financial capital?
The laws only really work in this type of market.
A Perfectly competitive market.
Peanut butter prices rise and jelly sales fall in response.
What are complementary goods?
A firm’s goal - according to classic theory at least.
What is profit maximization?
The economic system practiced in the United States.
What is Capitalism (A mixed Economy)?
It's a for profit business!
What is a firm?
This factor of production is generally the most expensive.
What is labor?
The point where supply and demand curves meet,
What is equilibrium?
The price of Pepsi rises and Coke sales rise.
What are substitute goods?
We are approaching maximum profitability here!
What is MR=MC?
Trade unions engage in this type of negotiation to improve wages and conditions.
What is collective bargaining?
A tax system in which the tax rate increases as income increases.
What is a progressive tax?
The process of using profits/revenue to buy more productive assets.
What is Capital Accumulation.
A good lacks this when the demand doesn't shift when the price goes up.
What is elasticity?
It lacks substitutes.
What is Monopoly.
The ownership interest in a company - measured financially. Essentially what the owners or shareholders own after all liabilities are subtracted from assets.
What is Equity?
A good that is interchangeable with others of its kind - it has Fungibility!
What is a commodity?
When you don’t pay your balance in full, the bank charges this percentage on what you owe.
What is APR?
The raw input into production - to get an output!
What are commodities?
Consumers need this to make good choices!
What is perfect information?
A product whose demand increases as income increases
What is a normal good?
Equity that is publicly traded on stock exchanges.
What are stocks/Common stocks?
This ideally regulates market prices in capitalism.
What are the Consumers?
This is the ideal amount of your statement balance to pay to avoid paying any interest.
What is a statement balance?
On a supply and demand graph, the point where quantity supplied equals quantity demanded.
What is Market equilibrium?
It's a matter of taste.
What is value?
I just accept the price that people are willing to offer!
What is a price taker?
That constant upkeep!
What is cost of production?
The basic economic problem...of limits!
What is scarcity?
Gustav and Fran!
What are the names of Mr. Kiser's dogs?