2013 Midterm Flashcards
What is Scarcity?
Lack of enough resources to satisfy all desired uses of those resources
What is Capital?
Final goods produced for use in the production of other goods, such as equipment and structures.
What is Entrepreneurship?
The assembling by an entrepreneur of resources to produce new or improved
products and technologies.
Economics is?
the study of the choices made as we attempt to deal with scarcity?
What is Opportunity Costs?
the most desired resource(s) forgone to get something else is called?
What are Production possibilities?
the alternative goods and services that could be produces in a given period with available resources is called?
Efficiency means?
squeezing maximum output out of available resources?
Economic Growth is?
increase in output (real GDP); an expansion of production possibilities?
What is market mechanism?
aka the invisible hand, adjusts based on sales & prices=Price signal
what is laissez faire?
the doctrine of “leave it alone”, nonintervention by government in the market mechanism?
What is a Mixed Economy?
An economy that uses both market signals and government directives to allocate goods and resources.
Market failure means?
when the invisible hand has failed to achieve the best possible outcomes?
Government failure means?
when the government intervention fails to improve market outcomes or makes them worse?
What is Macroeconomics?
the study of aggregate economic behavior of the economy as a whole
The ‘big picture’, things such as full employment, control of inflation, and economic growth
Doesn’t worry about the well-being or behavior of specific individuals or groups
What is Microeconomics?
the study of individual behavior in the economy
concerned w/ the details from individuals, firms, and government agencies that compose the economy
What is Ceteris Paribus?
assumption of “other things remaining equal” is called?
What are the 3 Core Choices every nations confronts?
WHAT to produce with our limited resources,
HOW to produce the goods and services,
FOR WHOM goods and services are produced
What are the Four Basic Factors of Production?
Land, Labor, Capital, Entrepreneurship are?
What are the two essential principles illustrated by the Production Possibilities Curve?
the production possibilities curve illustrates two essential principles: Scarce resources and Opportunity Costs.
What is the Law of Increasing Opportunity Costs?
This law says that we must give up ever-increasing quantities of other goods
and services in order to get more of a particular good.
What is Per Capita GDP?
The dollar value of GDP divided by total
population; average GDP.
What is the definition of Factors of Production?
The resources(inputs) used to produce goods and services(outputs) are called?
What is Human Capital?
The knowledge and skills possessed
by the workforce.
What does Capital-intensive mean?
Production processes that use a high ratio
of capital to labor inputs.