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| the study of the choices that people make to satisfy their needs and wants |
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| a person who studies these economic choices |
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| study of the choices made by economic actors such as households, companies, and individual markets |
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| examines the behavior of entire economies |
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| the people who decide to buy things |
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| the people who make the things that satisfy the consumers |
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| physical items that can be purchased |
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| are actions or activities that are performed for a fee |
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| anything that people use to make or obtain a need or want |
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| resources that can be used to produce goods and services |
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| any human effort exerted during production |
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| the manufactured materials used to create products |
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| the buildings, structures, machinery, and tools used in the production process |
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| the goods and services that people buy |
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| use of technical knowledge and methods to create new products |
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| the combination of organizational abilities and risk taking involved in starting a new business or introducing a new product |
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| person who attempts to start a new business or introduce a new product, risking economic failure in return for the possibility of financial gain. |
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| the combination of limited economic resources and unlimited wants results in a condition |
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| level of output that results from a given level of input |
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| use of the smallest amount of resources to produce the greatest amount of input |
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| assigning a small number of tasks to each worker |
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| one good is sacrificed for another (economic terms = trade-off) |
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| the cost of this trade-off, the value of the next best alternative that is given up to obtain the preferred item |
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| production possibilities curve |
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Definition
| trade-offs and opportunity costs. this shows all of the possible combinations of two goods or serviced that can be produced within a stated time period. |
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| producers and consumers agree to provide one type of item in return for another |
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| exchange one set of goods for another. DIRECT TRADE |
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| is any item that is readily accepted by people in return for goods and services. |
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| allows consumers to use items before completing payment for the merchandise |
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| usefulness to a person (value is determined by the degree of utility) |
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| people or societies demonstrate this when they can fulfill all of their needs without outside assistance |
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| means that events or developments in one region of the world or sector of the economy influence events or developments in other regions or sectors. |
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| to avoid problems of barter, goods and services are assigned (value) that can be expressed as an amount of money. |
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| based on a society's values, its customs and traditions |
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| relies on government officials to answer the three basic economic |
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| individuals answer the three basic economic questions |
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| this free exchange of goods and services |
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| the impulse hat encourages people to fulfill their needs and wants |
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| combines elements of traditional, market, and command economic models |
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| mixed economies that are closest to the pure command model are said to practice authoritarian socialism, which is also known as communism. In these economies the government owns or controls nearly all the factors of production. |
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| see authoritarian socialism (in the definition) |
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Term
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| individuals own the factors of production and answer the basic economic questions. |
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| the government owns some of the factors of production |
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| system under which business can be conducted freely with little government intervention |
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| Goods that are owned by individuals and by businesses rather than by governemnt |
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| individuals also have the right to enter into agreements with one another to buy and sell goods and services |
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| economic rivalry that exists among businesses selling the same or similar products |
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| when producers and consumers unconditionally purchase and sell products and they believe that the opportunity costs of such a trade are acceptable to both parties |
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| represents all of the exchanges of goods and services |
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| represents the exchange of resources between households |
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| lowest possible level of unemployment in the economy |
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| achieved when the overall price of goods and services available in the economy is relatively constant |
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| refers to people's economic well-being |
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| system in which these questions primarily are answered by individuals and businesses |
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| system in which those decisions are generally made by the governor |
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| or democratic socialism is identified by control of major industries with some decisions made by individualizes |
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| defined a nation's power in terms of its supply of gold and silver |
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| providing economic information and setting goals that are not mandatory |
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| a policy in which the government purchases and takes over operation of a private firm |
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| As these "middle class" merchants, called bourgeoisie, challenged the ruling nobles. |
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| provided the labor needed for the production process in return for very low wages |
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| under which the state took control of land to form large state-run farms. |
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| restructuring was an effort to move the economy toward market socialism |
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| rapid industrial and agricultural development in the second 5 year plan. |
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| the great leap forward established groups of collective farms called people's communes in an attempt to increase the agricultural output of China. |
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| a period from 1966-1976 of chaos in China |
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| modernization in agriculture, industry, science, technology |
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| household responsibility system |
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Definition
| most significant agricultural reform was the establishment of the H R S, also called the contract responsibility system. |
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Term
| Tienanmen Square Massacre |
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Definition
| hundreds of protesters were killed and thousands more were injured |
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