Econ test 1

Scarcity

The fundamental condition of not having enough resources to meet our demand.

Shortage

A temporary condition where demand outstrips supply; unlike scarcity, which is a permanent tension.

Goods

Tangible, physical objects that can be purchased, such as food, clothing, and furniture.

Services

Work performed by one person for payment, such as teaching or medical care.

Factors of Production

Economic resources needed to produce goods and services.

Land

All natural resources used to produce goods, like fields and forests.

Labor

The human time and effort that goes into producing goods and services.

Physical Capital

Man-made products necessary for production, like tools and machinery.

Human Capital

The knowledge, skills, and experience of workers.

Entrepreneurship

The risk-taking to combine other factors of production to start businesses.

Opportunity Cost

The value of the next best alternative that is given up when a decision is made.

Production Possibilities Curve (PPC)

A graph showing all different production combinations for two products.

Social Class

A system of categorizing people based on social and economic characteristics.

Upper Class (in the U.S.)

Top-level executives and high-profile individuals like celebrities.

Middle Class (in the U.S.)

College-educated professionals and skilled craftsmen.

Lower Class (in the U.S.)

Individuals living below the poverty line with limited education.

Union

An organization of workers who negotiate with employers as a group.

Collective Bargaining

Negotiation between a union and company required by law once unionized.

Strike

An organized stoppage of work by employees to force employer compliance.

Private Sector

Businesses not controlled by the government.

Public Sector

Government-funded workplaces, such as schools and police departments.

Buying on Margin

Using borrowed money to purchase more shares in the stock market.

Short Selling

Borrowing stocks to sell and then buying them back later at a lower price.

Fluid Social Structure

A less-defined, more flexible system where movement between classes is possible.

Rigid Social Structure

A clearly defined system with hereditary membership and little movement.

Risks of a Union Strike

Loss of pay during the strike and potential for violence.

Rewards of a Union Strike

May force employers to improve conditions, gain media attention, and enhance unity.

U.S. Union Strength

Unions have been traditionally stronger in industrial manufacturing jobs and weaker in service industries.

Difference Between Buying on Margin and Short Selling

Buying on Margin involves purchasing shares using borrowed money, while Short Selling involves borrowing shares to sell them.

American Factory Documentary Challenge

Difficulties include language barriers, work culture differences, unionization attempts, and profit complaints.