Notgrass Exploring Economics units 1-5

the Wealth of Nations

Adam Smith's book on economics

war of 1812 major cause

British interference with American sea trade

Das Kapital

Karl Marx's main treatise on economics

mixed economy

a free market economy that has some degree of government oversight or involvement

rebate

an example of an incentive

economic choices

are necessary because of a scarcity of resources

economic institutions

banks, corporations, unions, and laws protecting property right

efficiency

being as productive as possible

early church

believed what they owned was common property

Max Weber

claimed that Protestant thought was a strong influence on capitalism

cost benefit analysis

determining if an economic step is worth the effort

marginal analysis

determining the additional cost of taking the next step

interdependence

economic specialization leads to this

consumption

economies are concerned with the description and analysis of the production,distribution and _________ of goods and services

"invisible hand"

freedom of the market to operate effectively

equity

goods and services shared as equally as possible

security

guaranteed access to the necessities

abundance

how God is described: as a God of this

growth

increased productivity in an economy.

economy

is always changing

inflation

major economic problem of 1970s

supply and demand

markets operate on this principle

three categories of production resources

material resources, human resources, capital

production possibilities curve

maximum production an economy can have given its production resources

money

medium of exchange

every man under his vine and fig tree

old testament phrase that described economic security, prosperity, and freedom

government tax money

partly used to pay government workers who become consumers

Alexander Hamilton

proposed assumption of debt, import tariffs, and a national bank

stability

protection or avoidance of boom and bust cycles

mutual self interest

results in goods and services being available for people to purchase

Proverbs

says debt is dangerous

circular flow diagram

shows businesses providing goods and services and households providing expenditures for consumption

history shows us that

socialism doesn't improve economic conditions as w ell as capitalism

power of prices

supply and demand works because of this

New World thinking

that colonies would produce wealth and become markets for mother country

tradeoff

the consequence you must accept when you make a decision

opportunity cost

the loss of other alternatives when one alternative is chosen

steward

the word for economics comes from this word in the Greek

prophets

they condemned the Israelites for greed and injustice

specialization

to focus on one kind of work and pay others for a trade, goods, or service

Jesus

told his followers not to worry about money

three kinds of economies

traditional (barter) capitalist (free market) command (socialst)

Karl Marx

urged workers to develop class consciousness, cast off their chains and seize the means of production

two issues in last half of 19th century

use of greenbacks and coining of silver

monasticism

voluntary poverty and living separate from the world

Keynes and Galbraith

were advocates of greater government spending to stimulate the economy

economic powers of constitution

were important but limited

free markets

what Friedman and Austrian School of Econ advocates

panics

what economic downturns were called in the 19th century. called recessions today

Lord

who the promised land belonged to before the Israelites