econ 1-1

list the mercantilists characteristics

1) british navigation acts on american colonies. 2) favorable balance of trade. 3) gov. supports industry while enacting labor laws to keep labor & production cost low. 4) navigation acts were one of principal causes of the revolutionary war

list the physiocrats characteristics

1) believe in laissez-faire. 2) opposed favorable balance of trade. 3) agriculture & natural resources were their true source of wealth.

letting the people do as they choose

laissez-faire

list the basic economic questions

1) what goods & services are to be produced? 2) how are these goods and services to be produced? 3) for whom are they being produced for?

give examples of needs

food, water, clothes

give examples of wants

tv, shoes, phone

list & define the factors of production

*natural resources:* "gifts" from nature not created by human nature, *entrepreneurship:* risk taking individual in search of profit, *capital resources:* tools, equipment, and factories used in production of goods & services, *human resources (labor):* people with their efforts and abilities

list the scope(s) of economics

prediction, explanation, description, analysis

people with all their efforts, abilities, and skills

labor

risk-taking individual in search of profits

entrepreneur

economics is concerned with \________________ and \_______________

prediction, explanation of economic activity

a basic requirement for survival

need

things we can live without

want

T OR F? people can satisfy all their wants and needs

false

natural resources or "gifts from nature" not created by human nature

land

T OR F? entrepreneurs are laborers

false

T OR F? 1 in 12 americans are trying to start a new business

true

T OR F? economics rarely ever helps predict what may happen in the future

false

T OR F? economic choices to be made are the responsibility of all citizens in a free & democratic society

true

Productive resources that make up the 4 categories of: land, capital, labor, and entrepreneurship

factors of production

people with all their efforts and abilities

labor

Degree to which resources are used efficiently; normally refers to labor, but can apply to all factors of production

productivity

good intended for final use by consumers rather than businesses

consumer good

Tool, equipment, or other manufactured good used to produce other goods and services

capital good

Work or labor performed for someone

service

fundamental economic problem facing all societies, that results from a combination of scarce resources and people's virtually unlimited wants

scarcity

Worth of a good or service as determined by the market

value

as a consumer, what role do you play in the circular flow of economic activity?

you provide labor for income, and then send your income to buy goods & services

T OR F? someone can get enough to satisfy their wants and needs

false

what are some examples of capital goods?

robot welder in a factory, an oven in a bakery, a computer

T OR F? scarcity is not required for value

false