Unit 8

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  1. Economy
    The study of how society chooses to use scarce resources to satisfy its unlimited needs and wants
  2. Needs
    Something required
  3. Wants
    Something desired but not need to live
  4. scarcity
    The fundamental condition of economics that results from the combination of limited resources and unlimited wants.
  5. Trade-Off
    The sacrifice of one good or service in order to purchase or proudce another.
  6. opportunity Cost
    the value lost by rejecting one use of resources in favor of another.
  7. Traditional economy
    economic decisions are based on how exonomic activity has been carried out in the past
  8. Command Economy
    Governoment makes all economic decisions
  9. Market Economy
    econmoic decisions are made by individuals lookinig out for their own families' best interest
  10. Mixed Economy
    Economoy that mixes elemets of different economic systems
  11. marginal Cost
    Cost of producing one additional unit of output
  12. Marginal Benefit
    extra/additional, benefit associated with an action
  13. Incentive
    Something that enxourages an action or effort
  14. Capitalism
    Economic system based on private ownership of the means of production
  15. Free Enterprise
    principle that business owners in a free market are allowed to run their businesses in any way they see fit, with little government interference
  16. Goods
    Products that are manufactures and that consumers can buy and own
  17. services
    work that does not produce an actual product but which consumers can buy
  18. factors of production
    resources used in production
  19. natural resources
    Any material in nature that can be used to produce goods and provied goods
  20. Labors
    human effort used to make goods and services
  21. Capital
    money invested in a buisiness; property equipment used to produce goods and services
  22. entreprenuer
    a business owner
  23. Gross domestic Product (GDP)
    value of al goods and services produced in a country in 1 year
  24. Standard of Living
    peoples economic well being as determined by the quantity of goods and services that they consume in a given time.
  25. Factor Market
    Market where production resources are bought and sold
  26. product Market
    market where producers offer good and service for sale.
  27. Productivity
    level of output that results from a certain level of output
  28. Specialization
    1) Focus of workin only 1 or a few aspects of production in order to improve efficiency. 2) Production only 1 or a few types of products in order to improve the manufacturing process
  29. Division of Labor
    division of complex procedures into small tasks, which enables workers to increase output throught specialization
  30. Economic Interdependence
    different regions rely on goods and services from other parts of the world
  31. Sole Proprietorship
    Business organizations owned by 1 person
  32. unlimited Liability
    An individual personbears ALL responsibility for a business
  33. Partnership
    business organization in which 2 or more persons share responsibility,costs, profits, and losses.
  34. Corporation
    business organization charted by a state governemtna nd given power to conduct buisness, sell stock, and recieve protection of state law
  35. stock
    a share of ownership in a corperation
  36. stockholder
    people who own corporate stock
  37. limited liability
    individualis protected
  38. Cooperative
    business that is owned collectively by those who use it services
  39. Elastic supply
    Changes in cost of producing a good lead to big changes in supply for a good.
  40. Labor Union
    Organizations of workers formed to bargain forhigher wages and iproved working conditions and to proctect workers rights
  41. Collective bargaining
    Process in which representatives of a labor union and an employer work to reach and agreement about wages and working conditions
  42. Mediation
    method of settling disputes between labor unions and employers throught the use of a 3rd party who offers a nonbinding solution
  43. Arbitration
    method of settling differences between labor unions and employers in which a 3rd party's decision must be accepted by both sides
  44. strike
    situation in which workers walk of the job and refuse to work until labor issues are settled
  45. lockout
    company refuses to let workers work
  46. monopoly
    company that controls all production of a good for service
  47. Business Cycle
    Economic patterns in which a free market economy goes through periods of prosperity and depression
  48. Expansion
    period in a buisness cycle during which the economy is growing
  49. Peak
    highpoint in a business cycle
  50. recession
    sever contraction in a business cycle
  51. Monetary policy
    a governments policy of regulating the amount of money in the economy
  52. Fiscal policy
    Governments policy of taxation and spending
  53. intrest
    payment foe the use of loaned money
  54. easy-Money policy
    An economic policy that increases the amount of money in the money supply
  55. Tight- Money Policy
    Economic policy that involves raising intrest rates to decrease the amount of money borrowed and reduce inflation
  56. reserve requirement
    amount of money banks must have on hand
  57. federal reserve system
    U.S. banking system that handles banking needs of federal government and regualates the money supply
  58. Collateral
    Propertyused to guarantee that a loan will be repaid
  59. discount rate
    rate of intrest charged by the Federal reserve banks on loans to member banks
Card Set:
Unit 8
2011-05-26 23:54:23

Civics vocab
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