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Factors of production
resources of land, labor, capital, and entrepreneurship used to produce goods and services
basic problem of econ, people have unlimited wants that exceed resources. It always exists.
Father of Capitalism
6 main characteristics of the American economy
- -little or no gov control
- - freedom of enterprise
- -freedom of choice
- -private property
- -profit incentive
exchanging one thing for use of another; cost of it is what you give up in order to get it
Branch of economic theory that deals with behavior and decision making by small units such as individuals and firms
branch of economic theory dealing with the economy as a whole and decision making by large units such as governments
decisions based on customs and beliefs that have been handed down from generation to generation.
Governmanet controls the factors of production and makes all decisions about their use
individuals own the factors of production and make economic decisions through free interaction while looking out for their own and their families’ best interest
combines characteristics of more than one type of economy
3 Basic Questions
What should be produced? How should it be produced? For whom should it be produced for?
any person or group that buys or uses goods and services to satisfy personal needs and wants; needs to have the money and time to purchase items to be a consumer
movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers
Receipt of money either directly or indirectly to buy goods and services in the present with the promise to pay from them in the future.
- Good Credit = 720 and higher.
- Bad Credit = 620 and below
Private business that investigates a person to determine the risk involved in lending money to that person
3 Basic buying principals
- 1. Gather info
- 2. using advertising wisely
- 3. comparison shopping
word, pic, or logo on a product that helps consumers distinguish it from similar products
General name for a product rather than a specific brand name given by the manufacturer
Rights as a Consumer
- 1 Right to safety
- 2. right to be informed
- 3. right to choose
- 4. Right to be heard
- 5. Right to redress Know
Good that lasts longer than 3 years
amount of money originally loaned
Amount of money borrower must pay for use of money
Equifax, Experian, and Transunion. Records financial transactions
Law of Demand
Economic rule stating that the quantity demanded and price move in opposite directions
Buying or renting a home
- - if you choose to buy a house, you will probably need to obtain a mortgage, which involves a cash down payment, monthly installments, and interests, plus money for closing costs and points.
- - most renters pay a security deposit and sign a lease that protects their rights as well as lists their responsibility.
law of supply
economic rule stating that price and quantity supplied move in the same direction
Diminishing Marginal Utility
second time will never bring as much satisfaction as the first
Uses one name but multiple people in control and selling
Civilian Labor Force
Total number of ppl 16 years old or older who are either employed or actively seeking work
category of workers employed in crafts, manufacturing, and non farm labor
category of workers employed in offices, sales, ore professional positions
people who provide services directly to individuals
people whose job require no specialized training
people whose jobs require some training often using modern technology
people who have learned a trade or craft either through a vocational school or as an apprentice to an experienced worker
highly educated individuals with college degrees and usually additional education or training
- - Gross Domestic Product
- - total dollar value of all final goods and services produced in a nation in a single year
Prolonged rise in the general price level of goods and services
market situation in which a single supplier makes up an entire industry for a good or service that has no close substitutes
Rivalry among producers or sellers of similar goods and services to win more business
anything customarily used as a medium of exchange, a unit of accounting and as store of value
association of workers organized to improve wages and working conditions for its members
A fee charged (levied) by a government on a product, income, or activity.
Characteristics of money
durable, portable, divisible, stable in value, scarce, and accepted.
Importance of World Trade
The World Trade Organization (WTO) helps to facilitate global trade. It is the major multilateral forum for creating agreements and settling trade disputes among governments.
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