when people, businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else
rewards offered to try to persuade people to take certain economic actions
generic term that refers to the various businesses involved in food production, including farming, seed supply, agrichemicals, farm machinery, sale of goods
manufacturing process with interchangeable parts increase productivity
when you don't have enough resources to produce all the things you want
opportunity costs, what economic choices make us give up
a process where robots put together parts on an assembly like
Human effort directed toward producing goods and services
Blue collar is typically laborious jobs and gets paid hourly wage, while white collar is "white collar and tie", is paid a salary
The quantity of something that producers have available for sale
the desire to own something and the ability to pay for it
A situation in which quantity supplied is greater than quantity demanded
A situation in which quantity demanded is greater than quantity supplied
movement along the curve
the struggle among producers for the dollars of consumers
the price that balances quantity supplied and quantity demanded
free enterprise/ capitalism, economic system in which businesses and consumers, not the government, decide what is produced
planned economy, an economic system in which the Government controls everything in the economy.
the least developed type of economy because it makes economic decisions the way it has always been. It is based on tradition, custom, and the way things have always been done. They have not changed very much over time. (Bartering is used)
an economic system that incorporates the characteristics of several different economic systems.
Henry Ford and the Assembly Line
American businessman, founder of Ford Motor Company, father of modern assembly lines, and inventor credited with 161 patents.
a government-mandated minimum or maximum price for a product
a minimum price that an employer can pay a worker for an hour of labor
Two or more goods that tend to be used together. An increase in the price of one will lead to a decrease in the demand of the other.
Products or services that can be used in place of each other. When the price of one falls, the demand for the other product falls; conversely, when the price of one product rises, the demand for the other product rises.
only having one provider of a product or service in a market
A market structure in which a few large firms dominate a market
the force that encourages people and organizations to improve their material well-being
what you cannot buy or do when you choose to do or buy one thing rather than another.
A general and progressive increase in prices
Scottish economist who wrote the Wealth of Nations, a precursor to modern Capitalism.
term economists use to describe the self-regulating nature of the marketplace
Idea that government should play as small a role as possible in economic affairs.
Wealth of Nations
This is the 18th century book written by Scottish economist Adam Smith in which he spells out the first modern account of free market economies.
Father of Communism, wrote the Communist Manifesto
A socialist manifesto written by Marx and Engels (1848) describing the history of the working-class movement according to their views.
John Maynard Keynes
English economist who advocated the use of government monetary and fiscal policy to maintain full employment without inflation
Government policy that attempts to manage the economy by controlling taxing and spending.
Government practice of spending more than it takes in from taxes
a large payment or other financial compensation guaranteed to a company executive should the executive be dismissed as a result of a merger or takeover.
A conflict that was between the US and the Soviet Union. The nations never directly confronted each other on the battlefield but deadly threats went on for years.
Exchanging products or services with others by agreeing on their values without using money.
Example of monopolies
U.S Steel, Microsoft
examples of oligopolies
when companies join together to become more powerful
a study that compares the costs and benefits to society of providing a public good
something that is made for the first time
An improvement of an existing technological product, system, or method of doing something.
3 economic questions
What to produce? How to produce? For whom to produce?
4 factors of production
land, labor, capital, entrepreneurship
You control all phases of production from the raw material to the finished product
Buy out your competition until you have control of a single area of industry