The relationship between the quantity of goods sold and a given price
What is the supply curve?
100
1500’s theory which held that
1. nations could increase their supply of money by exporting more products than they imported
2. nations needed colonies as sources of raw materials and as captive markets for their manufactured goods
3. accumulation of bullion was the path to national wealth and power
What is mercantilism?
100
Utility can measure it and you can pursue it
What is happiness or satisfaction?
100
fireworks and lighthouses, for example
What are a non-rivalrous, non-excludable goods (or public goods)?
100
Pricetag on labor
What are wages?
200
A graph depicting the trade-off between any two items produced
What is the production possibilities curve or frontier?
200
French economists who attacked mercantilism and believed government should interfere less in economic life (Adam Smith was a fan of these "-CRAT"ers!)
Who are the physioCRATS?
200
The arbitrary unit for utility (which shows how UN-creative economists are)
What is the util?
200
It's a "game" that "adds up" to a win-win situation, like the one resulting from specialization and trade.
What is a positive-sum game?
200
pricetag on capital
What is interest?
300
This shows that as price increases, producers make more goods
What is the supply curve?
300
British economist and utilitarian philosopher who proposed that profits be divided more equally among employers and workers
Who is John Stuart Mill?
300
People will continue to do something until their marginal utility is this
What is negative? (Marginal utility must be greater than or equal to marginal cost for people to continue.)
300
Means of exchange which is immune to inflation
What is barter?
300
pricetag on land
What is rent?
400
Happens to the PPC when there is an increase in productive capacity
What is the production possibilities curve shifts outward?
400
He declared that free enterprise would lead to increasingly severe depressions and eventual revolution.
Who is Karl Marx?
400
They change utility by giving people more reasons to act
What are incentives?
400
The government might levy one to internalize the cost of a negative externality
What is a tax --specifically a PIGOUVIAN TAX?
400
pricetag on entrepreneurship
What is profit?
500
What you know about Product/Serivce A and Product/Service B when their PPF linear
What is they are similar?
500
This classical liberal believed property rights were the bedrock of all liberty and argued that authority to govern derived from a social contract among men rather than from any divine right
Who is John Locke?
500
While the consumer experiences diminishing marginal utility, the producer experiences this
What is diminishing marginal returns?
500
Congress often uses these to internalize the benefits of positive externalities
What are subsidies or tax incentives?
500
what you call a state which derives its primary income from its natural resources rather than from taxation