(10 points) Online Quiz for Unit One Vocabulary (Quizlet): http://quizlet.com/69849400/economics-101-unit-one-flash-cards/
(10 points) Unit One Vocabulary Definitions & Original Examples:
Need vs. Want- A need is something like air, food, or shelter that is necessary for survival. A want is a item we desire. Example: Need- Food, Water, Shelter. Want- IPhone, Chipotle, Macbook
Goods & Services- Goods are physical objects such as shoes and shirts. Services are actions or activities that one person performs for another. Example: Goods- hockey stick. Services- Building a house.
Factors of Production- Resources that are used to make all good and services (land, labor, capital). Example: Below...
Land- All natural resources used to produce goods and services. Example: Trees, water
Labor- The effort that a person devotes to a task for which that a person is paid. Example: employment at Target
Capital- Human-made resource that is used to produce other goods and services. Example: automobiles; cars, tractors
Physical vs. Human Capital- Physical: are homemade objects to create other goods and services. Human: is the knowledge and skills a worker gains through education and experience. Example: Physical- cotton gin. Human- learning more about cars from being a mechanic.
Entrepreneurship- Are ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services. Example: Donald Trump, Bill Gates, Mark Zuckerberg.
Opportunity Cost- The most desirable alternative given up as the result of a decision. Example: increased salary from receiving a graduate/doctorate degree.
Trade-Offs- Are all the alternatives that we give up whenever we choose one course of action over another. Example: Going to community college and missing out on "college experience" (dorm, away from home, etc)
Guns or Butter? - A simplify explanation of the trade-offs countries face. Example: Rising food prices, making difficult to regulate price and distribution of public school lunches.
Marginal Thinking- When you decide how much power or less to do when making a decision. Example: Deciding if you'll study for just five days, or spend more time and study for six days.
Marginal Cost- the change in the total cost that arises when the quantity produced has an increment by unit. Example: Lowering number of ceramic students, saving clay energy used to spin and bake clay.
Marginal Benefit- is the maximum amount they are willing to pay to consume that additional unit of a good or service. Example: Price of a hockey stick being $220.
Production Possibilities Curve- A graph, that shows alternative ways to use an economy's productive resources. Example: *IMAGE AT TOP OF PAGE*
Production Possibilities Frontier - Line we can draw that shows combinations of the production. Example: *IMAGE AT TOP OF PAGE*
Efficiency- Using resources in such a way as to maximize the production or output of goods and services. Example: Producing greatest number of hockey sticks in a given set of time.
Under-utilization- Using fewer resources than the economy is capable of using. Example: Individual with Doctorate degree working for minimum wage at Subway.
Economic System- Method used by a society to produce and distribute goods and services. Example: U.S. Economy being a mixed economic system.
Factor Payments - The income people receive for supplying factors of production. Example: Salary earned for labor at a job.
Economic Freedom - The love we have for out country. Example: Freedom to be employed or not.
Economic Security - knowing that help is always available for us. Example: Social Security or Welfare Programs.
Economic Predictability - knowing that we can always get our household items at our favorite store. Example: Always being able to get gas from gas station.
Economic Equity - The best way to divide economy's money. Example: In Canada, citizens pay taxes to help people in poverty.
Economic Growth and Innovation - Population must grow for country to improve its standard living. Examples: Growth of engineers produce equipment to help efficiency.
Economic Goals - Environmental protection, full employment, universal medical care. Example: Goal of citizens being employed with health insurance.
Traditional Economies - relies on habit, customs, or ritual to decide what to produce. Example: Inuit of Northern Canada or South India.
Market Economies - Economic decisions are made by individuals and are based on exchange or trade. Example: Germany
Command Economies - when a central authority is in command of the economy. Example: China, Cuba, North Korea (Communist Societies)
Mixed Economies - market-based-economic systems in which government plays a limited role. Example: United States, France, Sweden.
Markets - and arrangement that allows buyers and sellers to exchange things. Example: Global Diamond Trade.
Specialization - The concentration of the productive efforts of individuals and firms on a limited number of activities. Example: Citrus fruit coming from warm southwest climate.
Factor Market - market it which firms purchase the factors of the production from households. Example: Factory owners sell their products made by employers who they pay.
Product Market - market in which households purchase and goods and services that firms produce. Example: Food from supermarket for government office
Role of Households and Firms - The players of the free market economy. Example: citizens and employers of the U.S.
Self-Interest - one owns personal gain. Example: Buying ACT studybook to do well on ACT.
Competition - the struggle among producers for the dollars of consumers. Example: Coke v Pepsi.
Invisible Hand - term economists use to describe the self-regulating nature of the market place. Example: Decision to buy coffee and donut instead of just coffee, bettering the person and the economy.
Private Property - property owned by individuals or companies not by the government or the people as a whole. Example: Acres of woods owned by a family.
Free Enterprise - an economic system in which private business operates in competition and largely free of state control. Example: Ability to have own bakery or shoe store.
Socialism - a social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society. Example: Denmark and Finland.
Communism - political system characterized by a centrally planned economy with all economic and political power resting in the hands of a central government. Example: Vietnam, Laos, and North Korea.
Authoritarian - requiring strict obedience to an authority, such as a dictator. Example: Regimes in China, Cuba, and Iran.
Collectives - Large farm leased from the state to groups of peasant farmers. Example: Preserving natural park and reserves.
Heavy Industry - Industry that requires a large capital investment and that produces items used in other industries. Example: U.S. Steel Kosice.
Laissez Faire - The doctrine that states that government generally should not intervene in the marketplace. Example: Owning store without government intervening.
Transition Economy - Period of change in which an economy moves away from a centrally planned economy toward a market-based system. Example: Transition of former Soviet Union to Russia.
Privatization - to sell state-run firms to individuals. Example: Argentina, Australia, and Brazil.
Profit Motive - The force that encourages people and organizations to improve their material well-being. Example: Purpose of enterprise for wealth, expansion, adn survival.
Open Opportunity - The concept that everyone can compete in the marketplace. Example: Any citizen is capable of being employed.
Private Property Rights - The concept that people have the right and privilege to control their possessions as they wish. Example: Landowner can build treefort on their own property, however and whenever they want.
Free Contract - The concept that people may decide what agreements they want to enter into. Example: Ability to have phone contract or TV contract.
Voluntary Exchange - The concept that people may decide what and when they want to buy and sell. Example: Ability to go shop at EP Mall whenever you want and when it's open.
Interest Groups - A private organization that tries to persuade public officials to act or vote according to group members' interests. Example: (USCC) US Chambers of Commerce.
Public Interest - The concerns of the public as a whole. Example: Concern of a community/neighborhood over burgulary rate.
Macroeconomics - The study of the behavior and decision making of the entire economies. Example: How increase/decrease of net exports affect nation's capital.
Microeconomics - The study of the economic behavior and decision making of small units, such as individuals, families, and businesses. Example: Finding ways to better Bauer's efficiency on produces quality hockey sticks at maximum rate.
GDP (Gross Domestic Product) - The total value of all final goods and seven produced in a particular economy. Example: GDP of Minnesota is 255 billion doors (2007).
Business Cycle - A period of macroeconomic expansion followed by a period of contraction. Example: 1980 rapid economic growth lead to inflation and then recession.
Technology - The process used to produce a good or service. Example: Computer, surgical tools, and space tools.
Public Good - A shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude non-payers. Example: National Security, street lighting, and flood control.
Public Sector - The part of the economy that involves the transactions of the government. Example: (HCMC) Hennepin County Medical Center.
Private Sector - The part of the economy that involves the transactions of individuals and businesses. Example: Private psychiatrist who owns/runs her private practice.
Free Rider- Someone who would not choose to pay for a certain good or sevice, but who would get the benefits of it anyway if it were provided as a public good. Example: Not having health insurance, still receiving health care when injured/ill.
Market Failure- A situation in which the market does not distribute resources efficiently. Example: Health Care in America.
Poverty- An income level below that which is needed to support families or households. Example: Homeless families living on the streets, struggling to afford clothes and food.
Welfare- Government aid to the poor. Example: (TANF) Temporary Assistance to Needy Families.
Cash Transfers- Direct payments of money to eligible poor people. Example: Social Security and Workers' Compensation
(1 Point Each) Example of Current Economic Topic From Unit One:
1.) Example of Factor Payment in the U.S. could be the salary earned by an employer of a workplace such as Subway or McDonalds, with minimum wage being $8/hour in Minnesota.
2.) United States of America is a Mixed Economy, because private sectors, public sectors, and government all play a vital role, and government and public sectors coincide.
3.) Current example of Cash Transfer is UNICEF's social cash transfer program in Zambia.UNICEF contracted with AIR (American Institutes for Research) to support a program monitoring and evaluating the framework and management in Zambia to then analyze results and make improvements to reduce extreme poverty and intergenerational trasnfer of poverty in the districts.
4.) Example of Free Contracts currently could be the ability to choose to sign up with Verizon Wireless and select their "MORE Everything" plan in which you choose to which aggrement you're signing with.
5.) Current example of Interest Groups in the U.S. could be NARAL Pro-Choice America, advocating for and providing comprehensive information on reproduction health, abortion, and birth control.
Need vs. Want- A need is something like air, food, or shelter that is necessary for survival. A want is a item we desire. Example: Need- Food, Water, Shelter. Want- IPhone, Chipotle, Macbook
Goods & Services- Goods are physical objects such as shoes and shirts. Services are actions or activities that one person performs for another. Example: Goods- hockey stick. Services- Building a house.
Factors of Production- Resources that are used to make all good and services (land, labor, capital). Example: Below...
Land- All natural resources used to produce goods and services. Example: Trees, water
Labor- The effort that a person devotes to a task for which that a person is paid. Example: employment at Target
Capital- Human-made resource that is used to produce other goods and services. Example: automobiles; cars, tractors
Physical vs. Human Capital- Physical: are homemade objects to create other goods and services. Human: is the knowledge and skills a worker gains through education and experience. Example: Physical- cotton gin. Human- learning more about cars from being a mechanic.
Entrepreneurship- Are ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services. Example: Donald Trump, Bill Gates, Mark Zuckerberg.
Opportunity Cost- The most desirable alternative given up as the result of a decision. Example: increased salary from receiving a graduate/doctorate degree.
Trade-Offs- Are all the alternatives that we give up whenever we choose one course of action over another. Example: Going to community college and missing out on "college experience" (dorm, away from home, etc)
Guns or Butter? - A simplify explanation of the trade-offs countries face. Example: Rising food prices, making difficult to regulate price and distribution of public school lunches.
Marginal Thinking- When you decide how much power or less to do when making a decision. Example: Deciding if you'll study for just five days, or spend more time and study for six days.
Marginal Cost- the change in the total cost that arises when the quantity produced has an increment by unit. Example: Lowering number of ceramic students, saving clay energy used to spin and bake clay.
Marginal Benefit- is the maximum amount they are willing to pay to consume that additional unit of a good or service. Example: Price of a hockey stick being $220.
Production Possibilities Curve- A graph, that shows alternative ways to use an economy's productive resources. Example: *IMAGE AT TOP OF PAGE*
Production Possibilities Frontier - Line we can draw that shows combinations of the production. Example: *IMAGE AT TOP OF PAGE*
Efficiency- Using resources in such a way as to maximize the production or output of goods and services. Example: Producing greatest number of hockey sticks in a given set of time.
Under-utilization- Using fewer resources than the economy is capable of using. Example: Individual with Doctorate degree working for minimum wage at Subway.
Economic System- Method used by a society to produce and distribute goods and services. Example: U.S. Economy being a mixed economic system.
Factor Payments - The income people receive for supplying factors of production. Example: Salary earned for labor at a job.
Economic Freedom - The love we have for out country. Example: Freedom to be employed or not.
Economic Security - knowing that help is always available for us. Example: Social Security or Welfare Programs.
Economic Predictability - knowing that we can always get our household items at our favorite store. Example: Always being able to get gas from gas station.
Economic Equity - The best way to divide economy's money. Example: In Canada, citizens pay taxes to help people in poverty.
Economic Growth and Innovation - Population must grow for country to improve its standard living. Examples: Growth of engineers produce equipment to help efficiency.
Economic Goals - Environmental protection, full employment, universal medical care. Example: Goal of citizens being employed with health insurance.
Traditional Economies - relies on habit, customs, or ritual to decide what to produce. Example: Inuit of Northern Canada or South India.
Market Economies - Economic decisions are made by individuals and are based on exchange or trade. Example: Germany
Command Economies - when a central authority is in command of the economy. Example: China, Cuba, North Korea (Communist Societies)
Mixed Economies - market-based-economic systems in which government plays a limited role. Example: United States, France, Sweden.
Markets - and arrangement that allows buyers and sellers to exchange things. Example: Global Diamond Trade.
Specialization - The concentration of the productive efforts of individuals and firms on a limited number of activities. Example: Citrus fruit coming from warm southwest climate.
Factor Market - market it which firms purchase the factors of the production from households. Example: Factory owners sell their products made by employers who they pay.
Product Market - market in which households purchase and goods and services that firms produce. Example: Food from supermarket for government office
Role of Households and Firms - The players of the free market economy. Example: citizens and employers of the U.S.
Self-Interest - one owns personal gain. Example: Buying ACT studybook to do well on ACT.
Competition - the struggle among producers for the dollars of consumers. Example: Coke v Pepsi.
Invisible Hand - term economists use to describe the self-regulating nature of the market place. Example: Decision to buy coffee and donut instead of just coffee, bettering the person and the economy.
Private Property - property owned by individuals or companies not by the government or the people as a whole. Example: Acres of woods owned by a family.
Free Enterprise - an economic system in which private business operates in competition and largely free of state control. Example: Ability to have own bakery or shoe store.
Socialism - a social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society. Example: Denmark and Finland.
Communism - political system characterized by a centrally planned economy with all economic and political power resting in the hands of a central government. Example: Vietnam, Laos, and North Korea.
Authoritarian - requiring strict obedience to an authority, such as a dictator. Example: Regimes in China, Cuba, and Iran.
Collectives - Large farm leased from the state to groups of peasant farmers. Example: Preserving natural park and reserves.
Heavy Industry - Industry that requires a large capital investment and that produces items used in other industries. Example: U.S. Steel Kosice.
Laissez Faire - The doctrine that states that government generally should not intervene in the marketplace. Example: Owning store without government intervening.
Transition Economy - Period of change in which an economy moves away from a centrally planned economy toward a market-based system. Example: Transition of former Soviet Union to Russia.
Privatization - to sell state-run firms to individuals. Example: Argentina, Australia, and Brazil.
Profit Motive - The force that encourages people and organizations to improve their material well-being. Example: Purpose of enterprise for wealth, expansion, adn survival.
Open Opportunity - The concept that everyone can compete in the marketplace. Example: Any citizen is capable of being employed.
Private Property Rights - The concept that people have the right and privilege to control their possessions as they wish. Example: Landowner can build treefort on their own property, however and whenever they want.
Free Contract - The concept that people may decide what agreements they want to enter into. Example: Ability to have phone contract or TV contract.
Voluntary Exchange - The concept that people may decide what and when they want to buy and sell. Example: Ability to go shop at EP Mall whenever you want and when it's open.
Interest Groups - A private organization that tries to persuade public officials to act or vote according to group members' interests. Example: (USCC) US Chambers of Commerce.
Public Interest - The concerns of the public as a whole. Example: Concern of a community/neighborhood over burgulary rate.
Macroeconomics - The study of the behavior and decision making of the entire economies. Example: How increase/decrease of net exports affect nation's capital.
Microeconomics - The study of the economic behavior and decision making of small units, such as individuals, families, and businesses. Example: Finding ways to better Bauer's efficiency on produces quality hockey sticks at maximum rate.
GDP (Gross Domestic Product) - The total value of all final goods and seven produced in a particular economy. Example: GDP of Minnesota is 255 billion doors (2007).
Business Cycle - A period of macroeconomic expansion followed by a period of contraction. Example: 1980 rapid economic growth lead to inflation and then recession.
Technology - The process used to produce a good or service. Example: Computer, surgical tools, and space tools.
Public Good - A shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude non-payers. Example: National Security, street lighting, and flood control.
Public Sector - The part of the economy that involves the transactions of the government. Example: (HCMC) Hennepin County Medical Center.
Private Sector - The part of the economy that involves the transactions of individuals and businesses. Example: Private psychiatrist who owns/runs her private practice.
Free Rider- Someone who would not choose to pay for a certain good or sevice, but who would get the benefits of it anyway if it were provided as a public good. Example: Not having health insurance, still receiving health care when injured/ill.
Market Failure- A situation in which the market does not distribute resources efficiently. Example: Health Care in America.
Poverty- An income level below that which is needed to support families or households. Example: Homeless families living on the streets, struggling to afford clothes and food.
Welfare- Government aid to the poor. Example: (TANF) Temporary Assistance to Needy Families.
Cash Transfers- Direct payments of money to eligible poor people. Example: Social Security and Workers' Compensation
(1 Point Each) Example of Current Economic Topic From Unit One:
1.) Example of Factor Payment in the U.S. could be the salary earned by an employer of a workplace such as Subway or McDonalds, with minimum wage being $8/hour in Minnesota.
2.) United States of America is a Mixed Economy, because private sectors, public sectors, and government all play a vital role, and government and public sectors coincide.
3.) Current example of Cash Transfer is UNICEF's social cash transfer program in Zambia.UNICEF contracted with AIR (American Institutes for Research) to support a program monitoring and evaluating the framework and management in Zambia to then analyze results and make improvements to reduce extreme poverty and intergenerational trasnfer of poverty in the districts.
4.) Example of Free Contracts currently could be the ability to choose to sign up with Verizon Wireless and select their "MORE Everything" plan in which you choose to which aggrement you're signing with.
5.) Current example of Interest Groups in the U.S. could be NARAL Pro-Choice America, advocating for and providing comprehensive information on reproduction health, abortion, and birth control.