Economics and Free Enterprise

Economic Goal: The government tries to protect people from adverse economic conditions.

Measures wholesale prices in the economy.

Factor of Production: The "extra" or fourth factor of production we talked about in class.

Who is going to do great on this test?

Period of at least 6 consecutive months when GDP does not increase.

Which is not one of the three questions every society must answer?

GDP =

The value of the next best alternative when one choice is made over another.

Competing for customers based on reputation, service, or better products...

Factor of Production: All human efforts that go into the production of a good or service.

Revenue - (minus) expenses.

All factors of production are owned by the government.

Economic decisions are made by the government or some central authority.

A general increase in prices.

The quantity produced per worker per hour.

Economic decisions are made by producers and consumers acting in their own self interest.

Laissez faire means...

Karl Marx advocated this type of economy.

The father of modern economics, he wrote The Wealth of Nations.

The fundamental economic problem.

The government owns most of the factors of production, but people can own their own businesses.

The total dollar value of all final goods & services produced in a nation during a single year.

Economic Goal: Being able to buy what we choose and to work where we want.

Economic Goal: Employees and customers should be treated fairly, and not taken advantage of.

Economic Goal: The government makes a huge effort to fight inflation.

Factor of Production: Goods used to produce other goods and services.

Social science concerned with how people make unlimited choices with limited resources.

Economy composed of elements of other economic systems.

Product, price, place, and promotion.

"The customer is king!"

Struggle between companies for customers.

What affects the business cycle, and vice versa?

Factors of Production: Gifts of nature.

Economic Goal: The desire for an economy to create more goods and services in the future.

A measure of the change in price over time of a specific group of household goods and services.