CH.1
Economics
What is the study of scarcity and choice?
System based on custom, ritual, and habit
What is traditional?
What is a tariff?
Most severe form of trade restriction
What is an embargo?
What is scarcity?
Two things that can shift PPC to the right
What is technology and resources?
Questions all societies must answer
What is what, how, and for whom?
Three primary goals of a capitalist economic system
Protects jobs and can cause trade wars
What is protectionism?
National Income
What are Rent, Wages, Interest, and Profit?
A point sitting below the Production Possibilities Frontier
What is inefficient?
Group that answers "what" in the 3 basic questions
What is consumers?
Father of capitalism
Who is Adam Smith?
Having the lower opportunity cost to produce something
What is comparative advantage?
Ability to produce the most of something
What is absolute advantage?
Suppliers in the product market
What is businesses?
Group that answers "how" in the 3 basic questions
What are businesses?
Unemployment and Social Security checks are examples of these
What are cash transfers/transfer payments?
Last addition (country) to G8
Who is Russia?
Industry in early stages of development
What is infant industry?
The things supplied in the factor market
What is LLCE?
Unseen force that moves the free market economy
What is Invisible Hand?
Food stamps and subsidized housing are examples of these
What are in-kind benefits?
Asian Tigers
Who is South Korea, Hong Kong, Singapore, and Taiwan?
When producers can't or won't offer goods at current prices
What is shortage?