Economics praxis 5004 Latest 2023 Rated A+

Economics praxis 5004 Latest 2023 Rated A+ MicroEconomics The study of individual behavior in the economy, of the components of the larger economy. Macroeconomics The study of the economy as a whole opportunity cost the most desirable alternative given up as the result of a decision A market exists when: When buyers exchange money for goods and services from sellers supply and demand Prices go up when there is a shortage of a product available, prices go down when there is a surplus equilibrium price The quantity supplied of something equals the quantity of that thing demanded relative price The price of one good or service compared to the price of others competition Lowers costs and prices and encourages producers to produce more of what consumers are willing and able to buy. Laissez-faire Idea that government should play as small a role as possible in economic affairs. Capital Accumulated money or goods available for use in producing more money or goods Capitalism An economic system based on private ownership of capital Communism Government owns all means of production and regulates the economy Socialism Government only owns the major means of production and attempts to equalize distribution of income mixed economy market-based economic system with limited government involvement deficit spending When a government spends more than it takes in and goes into debt. Fascism A totalitarian form of government where one person rules (dictatorship) Mercantilism belief in the benefits of profitable trading The Communist Manifesto Pamphlet written by Karl Marx and Friedrich Engels-basis of Socialism. free enterprise the opportunity to control one's own economic decisions conspicious consumption People buy useless goods to establish high social status Monopoly One person or company owns all of one good or service Oligopoly Small number of sellers dominate a market or industry Fiscal Policy Governments attempt to influence the economy through changes in taxes, or government spending Nonprofit Institutions Exempt from most taxes Corporations businesses that are owned by many investors who buy shares of stock Stock market A place where stocks are bought and sold Gross Domestic Product Measure of a nations economic output and income. The total market value of all goods and services produced in the economy for one year, divided by the number of people living in the country Inflation A rise in both pay and prices Tariff A tax on imported goods Quota a limitation on imports Imported To bring in goods from a foreign country for sale or use Human Resources Amount of human effort given to obtaining money natural resources materials found in nature that are used by living things (land, air, minerals) production use of resources to create goods and services interest rate The amount paid to borrow money Scarcity A situation in which unlimited wants exceed the limited resources available to fulfill those wants entrepreneur people who take on financial risk to make profits by producing goods free enterprise the opportunity to control one's own economic decisions The law of diminishing returns When the benefit is outweighed by the cost incentive something that induces a person to act Globalization All countries are intertwined in an economic way capital goods Buildings, machines, technology, and tools needed to produce goods and services.