Laissez-faire is french for ________

"to let alone"

In ______ Adam Smith wrote a book called The Wealth of Nations

1776

What is the role of gov't in according to the laissez faire philosophy

The role of gov't in a laissez faire economy is to ensure free competition in the market place

Smith wrote his book about

a. Capitalismb. Socialismc. Mr. Gibbismd. Life on the Cross Country Course

a. Capitalism

The invisible hand is supposed to

guide people who work on their own

What is an example of a substitute?

Coke v. PepsiBlackberry v. Iphone

What is a complement?

When for something to work it requires you purchasing something else

What happens with product related goods?

If one goes up, then the competitor goes down

what are prices of related goods?

It is when someone comes out with something newer, faster, better and the price of the old one goes down

What do all of these have to do with?

factors effecting demand

If the population in area goes down than what follows suit?

A: Wants

What happens when the popular girl says that she does not like something ?

A: Everyone else does the same exact thing and throws the things out.

If you expect the Ipad 3 to be the best ever and its not what happens?

A: No one buys it.

If a competetitor makes a better product than what happens?

The value of your product goes down.

Drew

Drew

Q:

What does G.D.P. stand for?

A:

Gross Domestic Project

Q:

Name a weakness of G.D.P.

A:

Not a measure of wellbeingHard to get accurate measurementsAmericans are liars

Q:

What is Standard of Living?

A:

The quality of life based on the possesion of necessities and luxeries.

Q:

G.D.P. does not account for _____ Vs. _____.

A:

Qauntity Vs. Quality

Q:

Net Domestic Product is______.

A:

The loss of value due to depreciation (wear and tear)

What is the Product Market? -give and example

Where porducers offer goods and services for sale.ex. buying from ACME

What is the Factors Market?-give an example

Where workers earn wages, salaries and tips.

ex. working at your office

What do the arrows that go to and from the product market and the business secotr represent?

What does the arrow going from the Product Market to the consumer sector represent?

Someone buying needs and wants.

What does the arrow going from the Consumer Sector to the Factor Market represent?

The Consumer Sector making and offer to buy from the factors market

What is americas economic system, Socalism, or Capitalism

Capitalism

What is Voluntary Exchange?????

People Are free to risk their savings or any wealth in a business

How is money distributed equally in a socialist economic society???

The money is distributed based on an equation or a plan.....

What are the 2 forms that Collective ownership CAN take

State Ownership, & Communal Ownership

What is competition???

The struggle between buyers and sellers to get the highest quality quality products at the lowest prices

Define price ceiling?

price ceiling is the maximum price that can be charged for goods and services set by the gov.

Define price floor

price floor is the minimum price charged for goods and services set by the gov.

Who sets price ceiling and price floor?

The gov sets price ceiling and price floor.

Where does this all take place.

This all happens in the stores where they sell products

Why does the gov do this?

The gov does this to get the best prices for certain products.

Question:

Whe asking about what to produce, what should you take into account?

Answer:

The wants and needs of the community

Question:

Scarcity is a result of what two things?

Answer:

Unlimited Wants and Limited Resources

Question:

“When we need oil, should we drill in an Alaskan Wildlife Preserve or a less fragile area?” is an example of what choice that societies face?

Answer:

How to Produce

Question:

“Who benefits from the new school" is an example of which choice that societies face?

Answer:

For Whom to Produce

Question:

Why must these questions be answered?

Answer:

There aren't enough resources to satisfy people's unlimited wants

Question:Micro+ Macro economics are examples of this

Answer:Economic Models

Question:Micro economics are on a large or small scale

Answer:small

Question:What does micro economics help people understand

Answer:It helps people understand how single economic decisions are made

Question:

Are macro economics on a large or small scale

Answer:Large

Question:What does macro economics help people understand

Answer:It helps people understand how major economic decisions are made

QUESTION:What is the definiton of the Law of

Demand?

ANSWER:The concept that people are

normally willing to buy less of a product if the price is high and

more of it if the price is low.

QUESTION:What is the definition of the Law of Supply?

ANSWER:The principle that suppliers will normally offer more for sale at

higher prices and less at lower prices.

Quesiton: T/FPrice and Supply alwayd move in

the OPPOSITE direction.

ANSWER: False.(Price and Supply always move in the SAME direction)

QUESTION:Price and demand move in the

OPPOSITE directions.

ANSWER:True.

QUESTION: T/FThe higher the price of a good, the greater the incentive is for a

prodicer to produce more.

ANSWER:True.

Q: Who can use public goods?

A: EVERYONE!!! Yay! (That's why they're called PUBLIC goods).

Q: Who has the responsibility of providing public goods/services?

A: the Government

Q: What are private goods, and give two examples?

A: Private goods are goods that once consumed by another cannot be consumed again.

Q: Give two examples of private goods.

A: clothes, food, haircuts, insurance, medical services, phone services, cars, etc.

Q:Give four examples of public goods.

A: public parks, public restrooms, public libraries, museums, highways, street lamps, public schools (pretty much anything else that starts with the word public).....

Question: What is a trade-off?

Answer: The other thing you didn't pick.

Question: What do trade-offs apply to, ohter than money?

Answer: Trade-offs also apply to life decisons.

Question: What is opportunity cost?

Answer: The cost of the next best use of your time or money when you choose to do one thing but do another.

Question: Does opportunity cost only have to do with money?

Answer: No, opportunity cost also has to do with decision making in life.

Question: How are trade-offs and opportunity costs alike?

Answer: They both have alternative outcomes and they both have to do with decision making

Unlimited Wants + Limited Recources = ????

Scarcity

What are the three questions scarcity causes societys to face?

What to produce,Whom to produce for,And how to produce.

What is scarcity?

When there aren't enough recources tofit the want of everyone.

What i trade-off?

The oppertunities or things you lose by choosing the "other" option.

What is Becca's favorite color?

Purple duh!

Question: How do Supply and demand realate to each other?

Answer: Supply and demand get married and have a HUGE affect on each other (demand=high price=low; price=low demand=high) this is to get the equilibrium price where its just right!

Question: Why are some substitutes good and some are bad?

Answer: Good substitute: Original not healthy or more dangerous(ex. high sodium cheese balls v. 100 calorie cheese balls)

Bad Subtitute: The substitute being fake when you want the real(ex. uggs v. emu)

Question: If you have a surplus of 5 boxes of gushers at a market out of 10 would you....?

A. make the price higherB. keep it the same price C. lower the priceD. Buy 4 yourself and sell the last for $100

Answer: C.!!!!

Because surplus signals the price it too low!! (Law of Demand)

Question: What is an Externality realted to?

A. A side effect B. An Unintended side effectC. Domino effectD. The process of exterminating no competition

Answer: A. or C. because and externality is the INTENDED side effect of something that effect another which relates to the domino effect

Question: if too many companies merge for one single product then there will be a monopoly.Explain this sentence and why it is bad.

Answer: The sentence means that if too many compaies join together than there will be one provider for one product and this is bad because the government wants competition