Studied by 1 personlist the mercantilists characteristics
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
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
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
Note
Flashcard