Economics Final Exam – Flashcards

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

social science dealing with the study of how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources

basic requirement for survival; includes food, clothing, and/or shelter

way of expressing or communicating a need; a broader classification than needs

productive resources that make up the four categories of land, capital, labor, and entrepreneurship

natural resources or "gifts of nature" not created by human effort; one of four factors of production

tools, equipment, and factories used in the production of goods and services; one of four factors of production

money used to buy the tools and equipment used in production

people with all their abilities and efforts; one of four factors of production, does not include the entrepreneur

risk-taking individual in search of profits; one of four factors of production

process of creating goods and services with the combined use of land, capital, labor, and entrepreneurship

dollar value of all final goods, services, and structures produced within a country's national borders during a one-year period

good or service that is useful, relatively scarce, and transferable to others

tangible economic product that is useful, relatively scarce, transferable to others; used to satisfy wants and needs

good intended for final use by consumers rather than businesses

tool, equipment, or other manufactured good used to produce other goods and services; a factor of production

work or labor performed for someone; economic product that includes haircuts, home repairs, forms of entertainment

worth of a good or service as determined by the market

apparent contradiction between the high value of nonessentials and low value of essentials

ability or capacity of a good or service to be useful and give satisfaction to someone

sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services

meeting place or mechanism allowing buyers and sellers of an economic product to come together; may be local, regional, national, or global

market where productive resources are bought and sold

market where goods and services are offered for sale

sustained period of time during which a nation's total output of goods and services increases

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

separation of work into a number of separate tasks to be performed by different workers; same as specialization

assignment of tasks so that each worker performs fewer functions more frequently; same as division of labor

sum of peoples' skills, abilities, health, and motivation

economic activities in one part of the country or world affect what happens elsewhere

alternatives that must be given up when one is chosen rather than another

cost of the next best alternative use of money, time, or resources when one choice is made rather than another

diagram representing maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed

way of thinking that compares the cost of an action to its benefits

market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention; same as private enterprise economy

quality of life based on ownership of necessities and luxuries that make life easier

to separate into parts or basic principles so as to determine the nature of the whole; examine methodically

the system or range of economic activity in a country, region, or community

a general idea derived or inferred from specific instances or occurrences

to commit (money or capital) in order to gain a financial return

one that actively contributes to an accomplishment, a result, or a process

being the only one of its kind

sufficient to satisfy a requirement or meet a need

a series of actions, changes, or functions bringing about a result

wrote "The Wealth of Nations" in 1776; referred specifically to the ability and skills of a nation's people as the source of its wealth

introduced the assembly line

an 1830's French traveler who wrote about his travels in the US in the book, Democracy in America, a two-volume study of the American people and their institutions, is still relevant today

the world's first programmable computer developed in 1946; standing almost 10 feet tall and 80 feet wide, could perform up to 5,000 operations per second

or economic system—organized way a society provides for the wants and needs of its people

or economy—organized way a society provides for the wants and needs of its people

economic system in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom

economic system characterized by a central authority that makes most of the major economic decisions

economic system in which supply, demand, and the price system help people make decisions and allocate resources; same as free enterprise economy

a federal program of disability and retirement benefits that covers most working people

rise in the general level of prices

income that does not increase even though the prices go up

economic system in which private citizens own and use the factors of production in order to generate profits

economy in which competition is allowed to flourish with a minimum of government interference; term used to describe the American economy

act of buyers and sellers freely and willingly engaging in market transactions; characteristic of capitalism and free enterprise

fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish; includes both tangible and intangible property

fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish; includes both tangible and intangible property

driving force that encourages people and organizations to improve their material well-being; characteristic of capitalism and free enterprise

the struggle among sellers to attract consumers while lowering costs

role of consumer as ruler of the market when determining the types of goods and services produced

free enterprise market economy where people carry on their economic affairs freely, but are subject to some government intervention and regulation

free enterprise market economy where people carry on their economic affairs freely, but are subject to some government intervention and regulation

the totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and thought

a section or quantity within a larger thing; a part of a whole

resistant to change of position or condition; steadfast

to exchange (one thing) for another of the same class; to move or transfer from one place or position to another

a general idea derived or inferred from specific instances or occurrences

to commit (money or capital) in order to gain a financial return

to make a firm decision about

to control or direct according to rule, principle, or law

to keep close watch over; supervise

considered to be the first African American millionairess; devised a hair care and grooming system to meet the needs of African American women in 1905

well known entrepreneur; writer, director, producer and film business owner; created Indiana Jones series and Star Wars series

well known entrepreneur; combined economic success with a cultural impact that few, if any, others have achieved

well known entrepreneur; founder of Microsoft

well known entrepreneur; founder of Johnson Publishing Company

well known entrepreneur; founder of Mary Kay Cosmetics

every seven years or so it is reviewed and sometimes raised

combination of desire, ability, and willingness to buy a product

branch of economic theory that deals with behavior and decision making by small units, such as individuals and firms

listing showing the quantity demanded at all possible prices that might prevail in the market at a given time

graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time

rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship between price and quantity demanded

demand curve that shows the quantities demanded by everyone who is interested in purchasing a product

satisfaction or usefulness obtained form acquiring one more unit of a product

decreasing satisfaction or usefulness as additional units of a product are acquired

movement along the demand curve showing that a different quantity is purchased in response to a change in price

that portion of a change in quantity demanded caused by a change in a consumer's real income when the price of a product changes

that portion of a change in quantity demanded due to a change in the relative price of the product

consumers demand different amounts at every price, causing the demand curve to shift to the left or the right

competing products that can be used in place of one another; products related in such a way that an increase in the price of one increases the demand for the other

products that increase the value of other products; products related in such a way that an increase in the price of one reduces the demand for both

a measure of responsiveness that tells us how a dependent variable such as quantity responds to a change in an independent variable such as price

measure of responsiveness relating change in quantity demanded (dependent variable) to a change in price (independent variable)

type of elasticity where the percentage change in the independent variable (usually price) causes a more than proportionate change in the dependent variable (usually quantity demanded or supplied)

type of elasticity where the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)

elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied)

founder of the hip hop magazine, Blaze, focusing on rap music and fashion; targets readers ages 12-24

one of the richest and most powerful women in America; the 3rd woman in history to own a major television and film studio; with an annual income of about $100 million, she is poised to become the country's first African American billionaire

opened its first restaurant in Des Plaines, Illinois, in 1955; in 1967 it opened its first restaurants in cities in other countries; today, the company operates nearly 25,000 McDonald's restaurants in 115 countries on 6 continents

software producing company in the 1980's who 'tested' the market to determine the price of software; they raised software prices in increment of $20 all the way up to $210; they found that total revenue was maximized at a price of $90

founder of Amazon.com; debuted in the Web in July 1995

or proprietorship—unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the U.S.

unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the U.S.

requirement that an owner is personally and fully responsible for all losses and debts of a business; applies to proprietorships, general partnerships

stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production

situation in which a firm legally ceases to exist when an owner dies, quits, or a new owner is added; applies to sole proprietorships and partnerships

unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm; same as general partnership

form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business

court-granted permission to an individual or business to cease or delay payment on some or all debts for a limited amount of time

form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contacts, sue and be sued

written government approval to establish a corporation; includes company name, address, purpose of business, number of shares of stock, and other features of the business

certificate of ownership in a corporation; common or preferred stock

person who owns a share or shares of stock in a corporation; same as shareholders

person who owns a share or shares of stock in a corporation; same as stockholders

check paid to stockholders, usually quarterly, representing portion of corporate profits

formal contract to repay borrowed money and interest on the borrowed money at regular future intervals

amount borrowed when getting a loan or issuing a bond

payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans

feature of taxation that allows stockholders' dividends to be taxed both as corporate profit and as personal income

combination of two or more business enterprises to form a single firm

report showing a business's sales, expenses and profits for a certain period, usually three months or a year

measure of business profits determined by subtracting all expenses, including taxes, from revenues

gradual wear on capital goods during production

total amount of new funds the business generates from operations; broadest measure of profits for a firm, includes both net income and non-cash charges

combination of two or more firms producing the same kind of product

combination of firms involved in different steps of manufacturing or marketing

firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales

corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries

economic institution that operates like a business but does not seek financial gain; schools, churches, community service organizations

nonprofit organization performing some kind of economic activity for the benefit of its members

nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services

organization that works for its members' interests concerning pay, working hours, health coverage, fringe benefits, other job related matters

process of negotiation between union and management representatives over pay, benefits, and job-related matters

nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perceptions of its profession

nonprofit organization of local businesses whose purpose is to promote their interests

business-sponsored nonprofit organization providing information on local companies to consumers

company providing essential services such as water and electricity to consumers, usually subject to some government regulations

to attempt to sell or popularize by advertising or publicity; to help to establish or organize (a new enterprise), as by securing financial backing

1951- a pioneer in Corporate America; president and chief Operating officer (COO) of American Express; first African American to serve as president of a top-100 company

leads Dell Computer; in the forefront of making the Web the foundation on an existing business

one of the first to sell used goods online

began "Let's Smile Operation" seminars instructing Japanese businessmen that 'smiles equal sales'

cosmetic company that found a profitable strategy:acquire smaller cosmetic companies and promote the culture from which they came

American Federation of Labor Congress of Industrial Organizations; the largest labor organization in the U.S.

interest groups that include members of specific professions; they are similar to unions, but they work to improve the working conditions, skill levels, and public perception of the profession