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Buyer

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This is the person or persons who purchase a good or service

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Capital

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This is the equipment and factories used in the production of goods and services.

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Capital Good

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A tool or equipment used to produce other goods

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Capitalism

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This is an economic system where the factors of production are privately owned

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Command Economy

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This is the general name for an economic system characterized by a central authority which makes major economical decisions

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Competition

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In economics, this is a rivalry that may refer to rivalry among firms, or individuals, or the race to control resources

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Consumer

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One who buys goods or services for personal use

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Consumer Empowerment

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This term is an economic and legal concept that buyers should have access to a full range of resources to make informed economic decisions

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Consumer Good

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This is the term for a finished product used by an individual for personal use

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Consumer Protection Laws

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This term is an economic and legal concept that governments should use regulations to ensure the rights of buyers

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Consumer Sovereignty

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In a market economy, this is the role of the customer as the ruler of the market; the customer decides what goods and services will be produced

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Copyright

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This is a legally granted exclusive right yo produce s literary, musical, or artistic work for a given period of time.

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Deregulation

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This is the process of reducing our eliminating government regulations on an industry, allowing for more laissez-faire business practices. This has been a major issue in the airline, automobile, and power industry since the 1980s

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Disposable Income

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This is the economic term that refers to one's total income that is left following the payment of all required taxes.

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Division of Labor

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This is the process of separating the tasks in the process of production and assigning different tasks to different workers

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Economic Growth

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This is the increase in the value of the goods and services produced by an economy

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Economic System

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This is the way in which a society deals with the production, distribution, and consumption of goods and services

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Eminent Domain

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This is the right of the government to take private property, like land, for public use

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Entrepreneur

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This is a person who takes the risk of a new business enterprise

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Factors of Production

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Land, labor, capital, and entrepreneurship

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Government Regulation

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This refers to rules established at some level of government for the purpose of guiding business practices. Although it is commonly accepted that some guiding rules are beneficial to encourage competition and promote the public good, it is also commonly accepted that it may increase the cost of doing business.

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Gross Domestic Product

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The total value of all the goods and services produced within a country in a given year

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Harmful Spillover

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This phrase refers to the impact of economic activity upon people who are not directly involved. This phrase describes when the impact is negative

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Helpful Spillover

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This phrase refers to the impact of economic activity upon people who are not directly involved. This phrase occurs when that impact is positive.

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Incentive

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Any factor, usually financial, to influence one choice over another by an individual or business

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Infant Mortality Rate

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This is the number of newborns dying under a year of age divided by the total number of births, times a thousand

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Investment

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This is generally the act of putting aside money or deferring compensation for future profit or benefit

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Labor

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This is one of the main factors of production. It is the measure of the work done by people

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Land

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This is one of factors of production ( productive resource ), referring to anything that is taken from the earth during the production of a good or service

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Marginal Benefit

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This is an additional or extra benefit associated with an action

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Marginal Cost

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This is the change in the total cost of an item that occurs when the quantity produced changes by one unit

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Market Economy

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This is an economy in which the government had little to say about what, how, and for whom goods are produced; the factors of production are privately owned

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Medicaid

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This is a health program sponsored by the United States Government that provides services to individuals and families with low incomes

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Medicare

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Created in 1966, this is the US publicly funded health insurance program for the elderly and the disabled

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Mixed Economy

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This is the name given to an economy that may contain market, command, and/or traditional economic systems

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Natural Resources

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These are types of resources that are found on or in the Earth and are used in the production of goods and services

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Need

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In economic terms, this is something a person MUST have in order to survive, as opposed to something a person might simply desire

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Nonrenewable Resources

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These are materials found in nature that are used in the production of goods and services but whose supply is limited and finite

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Opportunity Cost

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This is the value lost when one alternative is chosen over another

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Patent

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This is a legal granted exclusive right to produce a product or process for a given account of time usually to the inventor of that product or process

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Production Possibilities Frontier

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This is a diagram showing the maximum amount of goods and/or services an economy can produce

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Productivity

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This is the amount of goods or services produced per input used

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Profit Motive

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In a market economy, this is the driving force that encourages individuals and organizations to improve their material well-being

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Property

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This tax is locally assessed, varies according to the worth of land and goods on it, and generally fund things like public schools

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Public Housing

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This is the name given to homes and apartments that are managed by federal, state, and/or local government agencies in order to assist low-income families in finding a place to live

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Public Services

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This is the primary use of tax revenue in many states, examples include schools, roads, firefighters and law enforcement officers

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Regulation

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These are the legal restrictions set forth by a government to produce desired outcomes

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Renewable Resources

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These are materials found in nature that are used in the production of goods and services and that are replenished on a consistent basis

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Resources

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These are the factors of production used in the making of goods and services

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Scarcity

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This is when resources are limited and the need for a good or service is higher for a society than what is produced

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Social Security

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This is a federal government program that provides income support to people who are unemployed, disabled, or over the age of 65

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Sovereignty

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In a market economy, the consumer's activities determine what is produced

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Specialization

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This is when each worker performs a specific task in production

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Standard of Living

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This is the term used to describe the general way in which people live, focusing primarily on things like average income, health care availability, life expectancy, educational attainment, etc

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Timber

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This is the name for wood that is cut from forests for use in the making of economic goods

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Trade off

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This is an economic situation related to opportunity cost in which one thing is given up in order to do as something else

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Variable Cost

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This is the expense for a good or product that changes in proportion to the activity of the company

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Voluntary Exchange

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This is the act of buyers and sellers freely and willingly engaging in market transactions

Economics 10/31/13 – Flashcards

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