ECON 101

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  1. Philosopher who beleives in a communist economic system
    Karl Marx
  2. Philosopher who beleives in a capitalistic economic system
    Adam Smith
  3. The study of how to best allocate scarce resources among competing uses
  4. The most desired good and services that are forgone in order to obtain something else (The next best choice)
    Opportunity Cost
  5. The 4 Factors of Production
    • Land
    • Labor
    • Capital
    • Entrepeneurship
  6. Lack of enough resources to satisfy all desired uses of those resources
  7. The 3 Basic Economic Questions
    • What
    • How
    • For Whom
  8. The alternative combinations of good and services that could be produced in a given time period with all available resources and technology
    Production Possibilites
  9. Expenditures on new plant and equipment in a given time period, plus changes in business inventories (but not money)
  10. An increase in output(real GDP) and an expansion of production possibilities
    Economic Growth
  11. Using the market to decide ecomic decisions (The Invisible Hand)
    Market Mechanism
  12. Leaving the market alone to make basic economic decisions
    Laissez Faire
  13. An economy that uses both the market mechanism and the government to make economic decisions
    Mixed Economy
  14. When the market mechanism fails to provide optimal outcomes
    Market Failure
  15. Costs or Benefits to a third party as a biproduct of a market
  16. Government intervention that fails to improve economic outcomes
    Government Failure
  17. Study of the economy as a whole
  18. The study of individual behaviours in the economy
  19. The assumption that nothing else changes
    Ceteris Paribus
  20. The total value of goods and services produced within a nation
  21. Total GDP devided by total population
    Per capita GDP
  22. Payments to individuals with no exchange
    Income Transfers
  23. Goods and services sold to foreign buyers
  24. Goods and services purchased from foriegn sources
  25. Production processes that use high capital instead of high labor
    Capital Intensive
  26. The knowledge and skills posessed by the workforce
    Human Capital
  27. When a firm produces an entire market of a particular product or service
  28. The way total personal income is divided up among income classes
    Personal Distribution of Income
  29. A tax stystem in which tax rates rie as incomes rise
    Progressive Tax
  30. A tax system in which tax rates fall as incomes rise
    Regressive Tax
Card Set:
ECON 101

Economics 101 Terminology
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