Unit 8

The study of how society chooses to use scarce resources to satisfy its unlimited needs and wants

Something required

Something desired but not need to live

The fundamental condition of economics that results from the combination of limited resources and unlimited wants.

The sacrifice of one good or service in order to purchase or proudce another.

the value lost by rejecting one use of resources in favor of another.

economic decisions are based on how exonomic activity has been carried out in the past

Governoment makes all economic decisions

econmoic decisions are made by individuals lookinig out for their own families' best interest

Economoy that mixes elemets of different economic systems

Cost of producing one additional unit of output

extra/additional, benefit associated with an action

Something that enxourages an action or effort

Economic system based on private ownership of the means of production

principle that business owners in a free market are allowed to run their businesses in any way they see fit, with little government interference

Products that are manufactures and that consumers can buy and own

work that does not produce an actual product but which consumers can buy

resources used in production

Any material in nature that can be used to produce goods and provied goods

human effort used to make goods and services

money invested in a buisiness; property equipment used to produce goods and services

a business owner

value of al goods and services produced in a country in 1 year

peoples economic well being as determined by the quantity of goods and services that they consume in a given time.

Market where production resources are bought and sold

market where producers offer good and service for sale.

level of output that results from a certain level of output

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

division of complex procedures into small tasks, which enables workers to increase output throught specialization

different regions rely on goods and services from other parts of the world

Business organizations owned by 1 person

An individual personbears ALL responsibility for a business

business organization in which 2 or more persons share responsibility,costs, profits, and losses.

business organization charted by a state governemtna nd given power to conduct buisness, sell stock, and recieve protection of state law

a share of ownership in a corperation

people who own corporate stock

individualis protected

business that is owned collectively by those who use it services

Changes in cost of producing a good lead to big changes in supply for a good.

Organizations of workers formed to bargain forhigher wages and iproved working conditions and to proctect workers rights

Process in which representatives of a labor union and an employer work to reach and agreement about wages and working conditions

method of settling disputes between labor unions and employers throught the use of a 3rd party who offers a nonbinding solution

method of settling differences between labor unions and employers in which a 3rd party's decision must be accepted by both sides

situation in which workers walk of the job and refuse to work until labor issues are settled

company refuses to let workers work

company that controls all production of a good for service

Economic patterns in which a free market economy goes through periods of prosperity and depression

period in a buisness cycle during which the economy is growing

highpoint in a business cycle

sever contraction in a business cycle

a governments policy of regulating the amount of money in the economy

Governments policy of taxation and spending

payment foe the use of loaned money

An economic policy that increases the amount of money in the money supply

Economic policy that involves raising intrest rates to decrease the amount of money borrowed and reduce inflation

amount of money banks must have on hand

U.S. banking system that handles banking needs of federal government and regualates the money supply

Propertyused to guarantee that a loan will be repaid

rate of intrest charged by the Federal reserve banks on loans to member banks