Vocab for Test 1

Economics 116 with Kiel at Ball State University

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By: Lizz Frick
Created: 2011-09-20
Size: 37 flashcards
Views: 6

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scarcity

Means vs. wants. Means are a gift of nature (food, water, land) and wants are the things we don't need to survive. It's psychological because there is plenty of everything to go around in America if we lived like Mexican peasants. But we aren't willing to do that.

manor

A medieval term used for a small scale political, production, and social things based on self-sufficiency. The owner of the manor owned the workers, land, and all the services.

usury

lending of money for interest. It was seen as bad because most loans with interest were made to farmers after a bad crop or other tragedy.

market

A type of economy in which products and services are bought and sold. In order for a market to exist, everything must be monetary, or have a money reward. A market is a solution to economic problems because it gives a chance to buy or sell for money.

factors of production

land (value derived from value of crop), workers or labor, and capital goods.

enclosure movement

People began to realize how valuable their land was and started making it more useful and valuable. Public fields, despite that they were owned by the lord the whole time, became private property and used for sheep or crops.

Calvinism

John Calvin: a protestant reformer. Calvinism: a harsh religious philosophy where condemnation was pre-decided before birth. Earth was a grace period before hell. Encouraged the search for wealth and had a business-like attitude. Also USED the wealth.

profit motive

The motive to make a profit. When people go out to sell their product or service for a profit. The drive to maximize income became a new mode of social coordination and control.

invisible hand

When the individual does not intend social good. They must produce what consumer wants, in correct quantities at a price that the consumer will buy it in. Value of good must be higher than the resources used.

new man

Another term for industrial entrepreneurs. Poor humble men looking for profit. Combined technology with production for a larger scale. Brought in Industrial Revolution

investment

Using currently available wealth, material, and labor to create more capital or wealth. The greater the investment, the higher the growth. Different than "saving" because saving is static, investing is kinetic.

rent

the money owed to a landlord.

social surplus

A surplus is any increase in wealth--we have extras of something. It can be psychological because it affects the population in many different directions. A surplus can reveal a great deal about a society based on how they react to it. (Aztecs)

guild

tiny centers of industrial production within medieval towns. Known as the business units of the medieval times. Like a union, but not a union of workers, but a union of masters

just price

Selling a thing for what it was worth and no more. Problems occurred when someone bought a product for too much or too little. What is the "just price" in that situation?

monetization

Having a money reward. When trading in market, everything must have a money value and be traded for money. Workers receive money for work, which allows then to buy more things (like the crops they grow in first place) Full circle.

merchant adventurer

Contemporary-thinking people. Went against the mainstream economy system. Built their own web of economy.

proletariat

The working class people. Would have worked in fields in medieval times. Lowest class of people with lowest income.

protestant ethic

They believed that whether or not you get into heaven was decided before you were born. For those who were going straight to hell, earth was a temporary grace period.

market mechanism

the systems of how to run a market. The stock market for example. Finding what to buy or sell at appropriate times.

Industrial revolution

Revolution beginning in Europe with the invention of the printing press and spreading to America all the way until the 1920's with the invention of factories. Much new technology, ideas and production was discovered.

entrepreneur

Someone who comes up with an idea on his own and markets, and sells it. They became especially crucial during the industrial revolution.

malthusian trap

tendency of population to grow faster than means. Poverty is the race between population and subsistence.

comparative advantage

Two countries (or individuals or businesses) can gain from trade if they each have different relative costs in the absence of trade. And if they produce the same goods. Even if they are not equal in production (one is more efficient in production than the other), they will both benefit from trade.

stationary state

capital class no longer has will to invest. growth in market stops. Population growth stops, landlords get richer.

division of labor

trade allows a division of labor. individuals increase and specialize with skills. not rich as individuals, but in a rich society.

feudalism

dominant social system in Europe. Land was given to lords from the king in exchange for military service. Vassals work for lords, peasants lived on lord's land and traded labor or homage.

serf

agriculture worker. bound by lord in feudalism system to work on land.

urbanization

moving from rural agricultural lands to urban city areas. peasants did this when work is out. also occurred in industrial revolution because that's where the jobs were.

reformation

changing of religions. protestant changes their beliefs from work to worth. (earning wealth to spending wealth.) favored good use of wealth.

wage labor

Exchange of labor power for a wage. the employer becomes entitled to all output his workers produce. workers give up all output to employer while under wage relationship.

capitalism

bigger businesses owning most of economy. many other classes work below them. a manor is an example of capitalism in medieval times.

factory

high source of jobs and production in industrial revolution. increased the rate of production and work greatly. created social change as well. workers no longer work at their own pace, but at the pace of a machine.

saving

accumulating one's wealth at one time without decreasing any of it. it will grow slowly but consistently. like investing, but unlike investing in that it's slower.

positive checks

Increased the death rate in a population. A part of Malthus's theory of population that limited population growth.

tenant farmer

capitalists profit's raise. population grows. increase in crops which gives money to tenant farmers, farmer who works at farm for landlord.

Say's Law

economic theory of basic market principles. States that everything must be paid for with products.

About this deck

By: Lizz Frick
Created: 2011-09-20
Size: 37 flashcards
Views: 6

About StudyBlue

“I have used this website for three exams, and I see a huge difference in my test results.”
Naj