Economics Review
Chapter 1
Section 1
1. Economics: study of how individuals & nations make choices about ways to use scarce resources to fulfill their needs & wants.
2. Scarcity: state in which people don’t & cannot have enough income, time, or other resources to satisfy.
3. Factors of production: resources of land, labor, capital, & entrepreneurship used to produce goods & services.
4. Entrepreneurship: ability to start new businesses, to introduce new products, & techniques.
Section 2
1. Trade-off: exchanging one thing for the use of another, often making unavoidable choices because of the problem of scarcity.
2. Opportunity cost: value of the next best alternative given up for the alternative that was chosen.
Section 3
1. Economy: all activity in a nation that affects the production, distribution, & use of goods & services.
2. Economic model: simplified representation of the real world which shows people’s reactions to changes in the economy; theory.
3. Values: beliefs or characteristics that an individual or group considers important.
Chapter 2
Section 1
1. Traditional economic system: economic systems are based on customs, beliefs, & ways of doing things that have been passed down from generation to generation.
2. Command economic system: the government controls the factors of production & makes all decisions about their use; also called controlled economy.
3. Market economic system: individuals own the factors of production & make economic decisions through free interaction – government doesn’t intervene.
4. Distribution of income: money payment for work, the amount of health care, education, food, & so on, that each person receives; distribution of goods & services among all members of an economic system.
Section 2
1. Capitalism: private individuals own the factors of production and decide how to use them within the limits of the law; market economic system & free enterprise system.
2. Free enterprise system: individuals own the factors of production & decide how to use them within legal limits.
3. Profit: money left after all the costs of production – wages, rent, interest, & taxes have been paid.
4. Profit incentive: desire to make money that motivates people to produce & sell goods & services that others ant to buy.
5. Competition: rivalry among producers or sellers of similar goods to win more business by offering the lowest prices or better quality.
Section 3
1. Standard of living: material well-being of an individual, group, or nation measured by the average value of goods & services used by the average citizen during a given period of time.
Capitalism is an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state
The first type of economic system that they movie shows is a traditional system. A traditional economy is an economic system in which the allocation of scarce resources and other economic activity is the result of ritual habit or customs. In other words a traditional economy is a barter or trade system, everybody decides WHAT WHEN and FOR WHOM. When the video first starts the Mochans had to trade all over the island to acquire what needed. After a while they had enough of trading the chief decided to switch to currency instead of trade.
...is considered as an art now. I felt that these pornographic images are serves as a medium for spreading a new culture as well, even though some of them are restricted severely.
Economic: of, relating to, or based on the production, distribution, and consumption of goods and services “http://www.merriam-webster.com/dictionary/economic”
A market economy that fails, to address the needs of at-risk children and adults. Currie feels Americans are so focused on the economy that there is no regulation, Americans also believe, it is a free market, and that individuals are responsible for their own failures or success. This type of economy is a system in which economic resolution and pricing of goods and services are determined and focused entirely by the aggregate of country’s citizens and business with little government intervening or central planning. This means private firms account for all production. Meaning consumers decide what should be produced, based off of what they have purchased.
... economic system, one that needs no interference, and needs to type of larger organization involvement.
In conclusion, economy is the study of production, distribution, and consumption of wealth in the human society. All these things have a position in our everyday lives like paying taxes in food, making sure your doing your best at work in order to not be unemployed. Raising the price on a good due to increase of labor prices and raw materials which is the result of a cost-push inflation. The Federal Reserve System is the main privately owned controlled central bank of the united states that is keeping the money flowing to our pockets and bank accounts, otherwise people would be having scavenger hunts looking for pennies, and dimes all over town. All these systems in the economical world are keeping the world happy like they say “money makes the world go round”.
Capitalism is an economic and political system where a country's trade and industry is controlled by private owners in order to have a profit, rather than controlled by the government/state.
The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.
It is the study of resource allocation, distribution and consumption, of capital and investment, and of the management of the factors of production. (http://wikitionary.org/wiki/economics)
Economics is the study of how best to allocate scarce resources throughout an entire market. Economics affects our lives on a daily basis, whether it is on a business level or a personal level.
Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics.
Introduction Economic systems are organized ways in which a state or nation allocates its resources and apportion goods and services to the national community. An economic system is slackly defined as a country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectation of this type of economy is that all major decisions related to the construction or production, distribution, commodity and service prices are all made by the government.
There are two types of economic systems that a society may adhere to; which are polar opposites. The Command system, also known as communism or socialism. In a command economy, the government owns the majority of the resources, and all decisions for the society is made based on a central plan. The command system has been adopted by countries such as the Soviet Union, China and North Korea. This economic system is commonly used by countries under a dictatorship. Despite the negative aura surrounding a dictatorship this system does have its pros and