Economics Ch 1-6

Public Sector

All human effort, including both mental work and physical effort

Relies on human labor than real capital

Prices serve ____ main purposes

National government is both the central owner ad the decision maker

A nation is wealthy through economic prosperity of it's people

A product which can command a price when sold

National government is both the central owner and the decision maker

Resources that are limited in quantity

Deals with choices made by individual units

Government receives more than it pays out

Goods and services that benefit the people and are not profitable

Four factors of production

Economic Models have two purposes

Goods used to produce other goods

Considered the stock piling of money as equivalent to accumulating wealth

What households spend on their goods & services

What businesses produce and sell

Four conditions may cause a change in the demand product

The amount of goods and services business firms are willing and able to provide at different prices

Equally distributing the nations pool of wealth to all its citizens

Each person in a nation has a right to a part of that nations Wealth

Modern economic systems

Every decision has opportunity benefits and opportunity _______

Examines large-scale economic choices & issues

When there is a great demand for a certain product, the _____ will rise

A good or service that has a benefit to society

Models of representations of objects or concepts, often in a greatly _______

Government freely intervenes to carry out it's economic and social goals

Goods that firms uses to produce consumer goods

Four Primary Economic Goals

Government spending exceeds what it receives in taxes

The value people place on a good or service

Goods that households may use in place of others

Relies more on automated equipment than human labor

Households, business firms, financial institutions are referred as

A measure of what an asset is worth

Radical, Classical, State

Goods purchased by individuals for personal use

A change in price will result in a change in the _______ demand

Four factor costs

State takes possession of those industries that are the cornerstones of the economy

Each individual has their own preference for objects or actions

The _________ hand

Socialism in it's extreme form