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Cards In This Set
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Manufactured goods needed to produce other goods and services are called??
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Capital goods
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The dollar value of all final goods and services and the most comprehensive measure of a country's total production output is??
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Gross domestic product (GDP)
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An ecomomic at it's production possibilities frontier is operating ...?
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At it's full potential
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For something to have value it must ..?
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Have utitlity
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Social Security is an example of..?
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Economic security
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The concept that comsumers "rule" or "drive" the market is know as
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Consumer sovereignty
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John buys a new book instead of a new CD, in this example, the opportunity cost is ...
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The CD
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Why is scarcity a fact of life??
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There will always be limited resources. Sometimes wants are just too numerous , and they can't be met.
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How is a factor market different from a product market?
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Factor market sells goods used in production. Product market sells goods made by those producers.
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How can a tractor be considered a capital good as well as a consumer good?
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A tractor can be a tool used to help produce other goods like a capital good. And it can be purchased by a consumer at markets.
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Traditional economic systems...?
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Rely on economic decisions made in the past, advantage- everyone has a specific job, disadvantage- lack of new ideas and lower standard of living.
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Command ecomic systems
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Run by one central authority, advantage- one person has to make tough decisions, disadvantage- not having much choice for comsumers
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Market economic system..?
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Run without government interference, advantage- a lot of choices, disadvantage- does not protect against market failures
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Sole proprietorship...
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Run by one person, difficulty raising financial capital, unlimited liabilty, taxed once, no sharing profits.
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Partnerships...
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Run by two or more, face unlimtied liabilty, spilt cappital, taxed once, easier to raise capital
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