Economics Ch 1-6

All human effort, including both mental work and physical effort

Resources that are limited in quantity

Four conditions may cause a change in the demand product

Considered the stock piling of money as equivalent to accumulating wealth

Prices serve ____ main purposes

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

Government spending exceeds what it receives in taxes

Relies on human labor than real capital

Households, business firms, financial institutions are referred as

National government is both the central owner and the decision maker

Four factor costs

Deals with choices made by individual units

The _________ hand

Socialism in it's extreme form

The value people place on a good or service

A measure of what an asset is worth

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

Government receives more than it pays out

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

What businesses produce and sell

Examines large-scale economic choices & issues

Four Primary Economic Goals

National government is both the central owner ad the decision maker

A good or service that has a benefit to society

Public Sector

A product which can command a price when sold

Relies more on automated equipment than human labor

Goods that firms uses to produce consumer goods

Equally distributing the nations pool of wealth to all its citizens

Every decision has opportunity benefits and opportunity _______

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

Modern economic systems

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

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

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

Goods and services that benefit the people and are not profitable

Economic Models have two purposes

Each individual has their own preference for objects or actions

Four factors of production

Goods used to produce other goods

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

Radical, Classical, State

What households spend on their goods & services

Goods purchased by individuals for personal use

Goods that households may use in place of others