Download American History HS SY2016 Pre/Post Assessment Define the terms

American History HS SY2016 Pre/Post Assessment
Define the terms below:
1. Economics: the science that deals with the production,
distribution, and consumption of goods and services, or the materialwelfare of humankind.
2. Labor: In economics, labor is a measure of the work done by human beings. It is conventionally
contrasted with such other factors of production as land and capital.
3. Supply and Demand: In classical economic theory, the relation between these two factors
determines the price of a commodity. This relationship is thought to be the driving force in a
free market. As demand for an item increases, prices rise. When manufacturers respond to the
price increase by producing a larger supply of that item, this increases competition and drives
the price down.
4. Savings and Investments: sums of money saved by economy and laid away.
5. Business Cycle: The business cycle is the fluctuation in economic activity that an economy
experiences over a period of time. A business cycle is basically defined in terms of periods of
expansion or recession.
6. Economic Profit: Economic profit is the monetary costs and opportunity costs a firm pays and
the revenue a firm receives. Economic profit = total revenue - (explicit costs + implicit costs).
7. Inflation: A sustained, rapid increase in prices, as measured by some broad index (such as
Consumer Price Index) over months or years, and mirrored in the correspondingly decreasing
purchasing power of the currency.
8. Primary Source: In the study of history as an academic discipline, a primary source (also called
original source or evidence) is an artifact, a document, a recording, or other source of
information that was created at the time under study. It serves as an original source of
information about the topic.
9. Secondary Source: A secondary source is any source about an event, period, or issue in history
that was produced after that event, period or issue has passed.
10. Opportunity cost: A benefit, profit, or value of something that must be given up to acquire or
achieve something else.