1st Flashcards

1
Q

Scarcity

A

More demand for service than availability. 2 cookies 1 person

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2
Q

Economics

A

Social science studies how ppl distribute limited resources to satisfy unlimited wants

Concerned how ppl respond to economic problem of scarcity

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3
Q

Resources

A

Land
Labour
Physical capital
Human capital
Entrepreneurship

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4
Q

Macroeconomics

A

Big picture

-inflation
-national income/GDP
-unemployment

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5
Q

Rationality assumption

A

Assumption that person makes decisions based on maximizing their self interest

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6
Q

Ceteris partbus assumption

A

Nothing changes except factors being studied

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7
Q

Opportunity cost

A

What you lose out on when you chose to do something else

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8
Q

Margin benefit

A

Extra benefits one receives

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9
Q

Margin cost

A

Extra costs or sacrifices

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10
Q

Production possibility frontier PPF

A

Blueprint showing what a country can produce w its resources

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11
Q

Absolute advantage

A

Perform task w least hours possible

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12
Q

Comparative advantage

A

Ability to produce a good/service at lower opportunity cost

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13
Q

Economic systems

A

Social arrangements through which resources are used to satisfy human wants

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14
Q

Pure command economy

A

Public ownership of all property resources
Social planner

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15
Q

Pure capitalist economy

A

Private ownership of all property resources

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16
Q

Mixed economics

A

Most economics
Decisions how resources are used are made by private/public sector

17
Q

Features Capitalism

A

Competition
Independent sellers/buyers competing the market
Market sets price
Sellers/buyers are price takers

18
Q

Demand

A

Desire for a product/service

19
Q

Law of demand

A

Prices go down, ppl buy
Prices go up, ppl no buy

20
Q

Other determinants of demand

A

Income
Tastes n preferences
The price of related goods

21
Q

Supply

A

How much of something producers want to sell at diff prices

22
Q

Law of supply

A

Price of good/service increases, quantity supplied increases
Price of good/service decreases, quantity supplied decreases