Laissez-faire is french for

Transcription

1 Laissez-faire is french for

2 "to let alone"

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

4 1776

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

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

7 Smith wrote his book about a. Capitalism b. Socialism c. Mr. Gibbism d. Life on the Cross Country Course

8 a. Capitalism

9 The invisible hand is supposed to

10 guide people who work on their own

11 What is an example of a substitute?

12 Coke v. Pepsi Blackberry v. Iphone

13 What is a complement?

14 When for something to work it requires you purchasing something else

15 What happens with product related goods?

16 If one goes up, then the competitor goes down

17 what are prices of related goods?

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

19 What do all of these have to do with?

20 factors effecting demand

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

22 A: Wants

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

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

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

26 A: No one buys it.

27 If a competetitor makes a better product than what happens?

28 The value of your product goes down.

29 Drew

30 Drew

31 Q: What does G.D.P. stand for?

32 A: Gross Domestic Project

33 Q: Name a weakness of G.D.P.

34 A: Not a measure of wellbeing Hard to get accurate measurements Americans are liars

35 Q: What is Standard of Living?

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

37 Q: G.D.P. does not account for Vs..

38 A: Qauntity Vs. Quality

39 Q: Net Domestic Product is.

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

41 What is the Product Market? -give and example

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

43 What is the Factors Market? -give an example

44 Where workers earn wages, salaries and tips. ex. working at your office

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

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

47 Someone buying needs and wants.

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

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

50

51 What is americas economic system, Socalism, or Capitalism

52 Capitalism

53 What is Voluntary Exchange?????

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

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

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

57 What are the 2 forms that Collective ownership CAN take

58 State Ownership, & Communal Ownership

59 What is competition???

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

61 Define price ceiling?

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

63 Define price floor

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

65 Who sets price ceiling and price floor?

66 The gov sets price ceiling and price floor.

67 Where does this all take place.

68 This all happens in the stores where they sell products

69 Why does the gov do this?

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

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

72 Answer: The wants and needs of the community

73 Question: Scarcity is a result of what two things?

74 Answer: Unlimited Wants and Limited Resources

75 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?

76 Answer: How to Produce

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

78 Answer: For Whom to Produce

79 Question: Why must these questions be answered?

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

81 Question: Micro+ Macro economics are examples of this

82 Answer: Economic Models

83 Question: Micro economics are on a large or small scale

84 Answer: small

85 Question: What does micro economics help people understand

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

87 Question: Are macro economics on a large or small scale

88 Answer: Large

89 Question: What does macro economics help people understand

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

91 QUESTION: What is the definiton of the Law of Demand?

92 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.

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

94 ANSWER: The principle that suppliers will normally offer more for sale at higher prices and less at lower prices.

95 Quesiton: T/F Price and Supply alwayd move in the OPPOSITE direction.

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

97 QUESTION: Price and demand move in the OPPOSITE directions.

98 ANSWER: True.

99 QUESTION: T/F The higher the price of a good, the greater the incentive is for a prodicer to produce more.

100 ANSWER: True.

101 Q: Who can use public goods?

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

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

104 A: the Government

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

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

107 Q: Give two examples of private goods.

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

109 Q:Give four examples of public goods.

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

111 Question: What is a trade-off?

112 Answer: The other thing you didn't pick.

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

114 Answer: Trade-offs also apply to life decisons.

115 Question: What is opportunity cost?

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

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

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

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

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

121 Unlimited Wants + Limited Recources =????

122 Scarcity

123 What are the three questions scarcity causes societys to face?

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

125 What is scarcity?

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

127 What i trade-off?

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

129 What is Becca's favorite color?

130 Purple duh!

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

132 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!

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

134 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)

135 Question: If you have a surplus of 5 boxes of gushers at a market out of 10 would you...? A. make the price higher B. keep it the same price C. lower the price D. Buy 4 yourself and sell the last for $100

136 Answer: C.!!!! Because surplus signals the price it too low!! (Law of Demand)

137 Question: What is an Externality realted to? A. A side effect B. An Unintended side effect C. Domino effect D. The process of exterminating no competition

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

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

140 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

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