Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Unit 2 Econ Test
| Question | Answer |
|---|---|
| Factors of Production | resources that are the building blocks of the economy that can be divided into four categories: land, labor, capital, and entrepreneurship; they are what people use to produce goods and services Ex. Money, workers, ideas, natural resources |
| Traditional Economic Systems and Pros & Cons | Pros: less environmental destruction Cons: less sanitary, no luxury goods, , lack of work-life balance, poor production efficiency, lack of innovation |
| Command Economic Systems and Pros & Cons | Pros: low levels of inequality and unemployment Cons: Lack of innovation and efficiency |
| Market Economic Systems and Pros & Cons | Pros: increased efficiency, production and innovation Cons: monopolies, no governemnt intervention, poor working conditions, and unemployment |
| Socialism | Economic systme that’s centurally planned with some degree of state or social control of production Ex. Norway |
| Free Market/Laissez-faire/Pure Capitalism | Economic system based on supply and demand with little or no government control Ex. Purchasing groceries at a given price set by the farm grower |
| Communism | Political and economic ideology that opposes liberal democracy and capitalism; advocates for a classless system where means of production are owned communally and private property doesn't exist or is severely cutailed Ex. Soviet Union |
| Marxism | Social, political, and economic philosphy aimed at elimiting the struggle between classes. Ex. What soviet unition wanted to be |
| Capitalism | An economic systme wherein private ocmpanies and individuals own property na dcaptial goods Ex. Canada |
| Main Characteristics of Capitalism | two-class system, private ownership, a profit motive, minimal government intervention, and competition |
| Adam Smith | Economist who is best known for his publication of his book, in which he advocated for free markets guided by the invisible hand of self-interest Ex. Invisible Hand |
| John Maynard Keynes | Believed the government had a role to play in the economy especially when it faltered Ex. raising taxes to cool the economy and prevent inflation |
| The Law of Supply and Demand | Combines two fundamental economic principles that describe how changes in the price of resource, commodity, or product affect its supply and demand |
| The Law of Supply/Supply Curves (Relationship Between Price and Quantity) | Relates price changes for a product to the quantity supplied; the relationship is direct |
| The Law of Demand/Demand Curves (Relationship Between Price and Quantity) | Holds that demand for a product changes inversely to its price when all else is equal |
| Equilibrium Price | Price is that at which demand matches supply, producing a market equilibrium that’s acceptable to buyers and sellers |
| Giffen and Veblen Goods | Giffen Goods: Low-priced staples also known as inferior goods Veblen Goods:luxury goods that gain in value and cosequently generate higher demand levels as they rise in price |
| Demand Elasticity | The degree to which rising price translates into falling demand is called demand elasticity |
| Factors Affecting Supply | Number of sellers, their aggregate productive capacity, how easily it can be lowered or increased, and the industry’s competitive dynamics. Also taxes and regulatinos may matter as well |
| Factors Affecting Demand | Consumer income, preferences, and willingness to substitue one product for another are among the most important determinants of demand |
| Individual Demand Curve | One that examines the price-quantity relationship for an individual consumer, or how much of a product an individual will buy given a particular price. |
| Market Demand Curve | The average of several individual demand curves in a singular market |
Created by:
KristenRose016
Popular Economics sets