Economics Chp. 2 (2)

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Economics Chp. 2 (2)
2013-08-27 19:08:37
Economics OHS

1st 9 weeks
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  1. British economist 
    came up the term utilitarianism
    John Stuart Mill (1806-1873)
  2. Utiliarianism
    Society should adopt policies that provide the greatest amount of happiness to the greatest number of people
  3. Utility (in economics)
    Means satisfaction
  4. Market
    The free exchange of goods and services between buyers and sellers
  5. Laissez Faire
    French term meaning "let the people do as they chose"
  6. Hands off policy
    Refers to how much the government should be involved in a capitalistic or market economic system
  7. Freedom of Enterprise
    Individuals are free to own the factors of production and determine how they will use the resources available to them within legal limits
  8. Freedom of Choice
    Buyers decide what they want and are willing to buy and what cost
  9. Profit Incentive
    The desire of a product to make money
  10. Revenue minus expenses
    Profit equals
  11. Competition
    • Rivalry among producers of similar good and or services to gain business¬†
    • (Ex: McDonald's vs Burger King)
  12. Private Property
    Individuals can purchase their own land; a factor of production