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