Economic Concepts Flashcards

Front

The fundamental economic problem all societies face

Back

Scarcity

Front

People who take risks and start businesses

Back

Entrepreneurs

Front

Examples of needs

Back

Food, clothing, and housing

Front

The company resource represented by employees in an automobile assembly plant

Back

Labor

Front

Who makes the majority of economic decisions in a market economy

Back

Consumers

Front

Summary of Karl Marx’s economic philosophy

Back

Abolish private property

Front

Economy where resources are owned and controlled by the government

Back

Planned economy

Front

Role of mortgage-backed securities (MBS) in the 2008 financial crisis

Back

They were the main contributor to the housing bubble and market crash

Front

If the demand of a product increases, suppliers will tend to produce more.

Back

This reflects the law of supply.

Front

A stock is best defined as a share representing ownership in a company.

Back

Stocks are a way for companies to raise capital.