Unit 1
The four factors of production.
What are land, labor, capital, and entrepreneurs?
As prices increase, the quantity demanded decreases. As prices decrease, the quantity demanded increases.
What is the Law of Demand?
The demographic group most vulnerable to poverty.
What are children under the age of 18?
This economic theory argues the government is the only entity large enough to intervene in investment-sector spending.
What is Keynesian economics?
A society in which the majority of economic choices are made without government interference
What is free enterprise?
The difference in value between the best option and the next best alternative that was not chosen.
What is opportunity cost?
The extent of which a price change causes a change in quantity demanded.
What is demand elasticity?
Legislation enacted to address the wage gap between genders.
What is the Equal Pay Act of 1963?
Theory that encourages cutting taxes and government regulations to increase incentive for private businesses and individuals.
What is supply-side economics?
Who ultimately determines the success of a product.
What is the consumer?
An economy in which sellers and buyers decide WHAT to produce, HOW to produce, and FOR WHOM to produce.
What is a market economy?
This is most likely to create a SHORTAGE of an item.
What is price ceiling?
Social Security, Medicare, and Medicaid spending are examples of this.
What is mandatory spending?
The era of U.S. History in which Keynesian economics was created as a solution to support the economy.
What is the Great Depression?
The federal government’s largest source of revenue
What is individual income tax?
The owner keeps all the profits in this business organization.
What is sole proprietorship?
The decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives when its price rises. i.e. buying $30 baseball tickets after learning basketball tickets are $60.
What is the substitution effect?
The entity has the primary responsibility for funding elementary and secondary education.
What is local government?
Broad social programs that use eligibility requirements to provide health, nutritional, or income supplements.
What are entitlements?
The characteristics an effective tax should exhibit one or more of.
What are equity, simplicity, and efficiency?
Protection from layoffs, illnesses, injuries, or disabilities falls under the goals of this.
What is economic security?
The term that refers to the discrimination that prevents women and people of color from advancing in a career path.
What is the glass ceiling?
The number of unemployed persons divided by the civilian labor force.
What is unemployment rate?
The economic theory that encourages short-term deficit spending from the government in order to boost the economy.
What is Keynesian economics?
"Those who benefit from government goods and services should pay in proportion to the amount of benefits they receive."
What is the benefit principle?