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Economics > 4.1 > Flashcards

4.1 Flashcards

1
Q

what is a social science

A

observation of human behaviour

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2
Q

what is a normative statement

A

they are opinionised statements

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3
Q

what is an economic model

A

simplified description of reality,designed to yield hypotheses about economic behaviour that can be tested

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4
Q

what is ceteris l’airbus

A

all other things being equal

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5
Q

why do economists find it hard to conduct science expirements

A

there are difficulties in carrying out expirements under controlled conditions to test a hypothesis

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6
Q

words for a positive statement

A

will, is

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7
Q

words in normative statements

A

ought to
must
should

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8
Q

an example of a value judgement

A

is whether or not to increase the minimum wage it’s a value judgement because it involves a decision about how much ppl should be paid

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9
Q

what is scarcity

A

means the state of being in short supply of a product or service

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10
Q

what is a renewable resource

A

a source that can be replenished faster than it is used up like wood wind solar energy

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11
Q

what is a non renewable resource

A

a resource that is used up before it’s replenished like:
crude oil
natural gas

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12
Q

4 factors of production

A

capital
land
labour
enterprise

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13
Q

what is land

A

it is the land that business uses
rent is the reward examples are
clay
wood
forestry

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14
Q

what is the reward for labour

A

wages

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15
Q

what is the reward for capital

A

interest

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16
Q

what is the reward for enterprise

A

profit

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17
Q

why do opportunity costs exist

A

because of scarcity anytime we do something we have to do forgo doing something else we wanted

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18
Q

an example of opportunity cost

A

the government spending money on education rather than healthcare

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19
Q

what is economics

A

using scarce resources to satisfy unlimited wants

20
Q

what is labour

A

the people that work for the business

21
Q

capital

A

man made aid to production

22
Q

what are capital goods

A

physical assets that a company uses in production process to manufacture products that the consumer will use later

23
Q

what are consumer goods

A

goods purchased for consumption and not used later to produce another consumer food

24
Q

what are free goods

A

goods that are not scarce and available without limit

25
Q

what are consumer durables

A

goods that do not need to be purchased very often and last atleast 3 years

26
Q

what are non durables

A

consumer goods in an economy that are consumed in one use or is used up over a short period of time like water

27
Q

what does the PPC show

A

the maximum output in an economy

28
Q

what happen if the product is underneath the PPC

A

it is inefficient and it isn’t using all of its resources

29
Q

what happens if the product is above the PPC

A

it is unobtainable

30
Q

what does an outward shift show in PPF

A

balanced economic growth

31
Q

what is a natural science

A

scientists observe aspects of the universe

32
Q

how economists come up with a theory

A

1)observe consumer behaviour

2)form hypothesis of how consumers spend

3)make predictions form hypothesis

4)use evidence to test predictions

5)theory then gets tested more so no cheats

33
Q

what is microeconomics

A

the study of how to best solve the basic economic problems which are scarce resources

34
Q

what are the 3 choices on how we allocate our resources

A

what to produce
how to produce
for whom to produce for

35
Q

how to determine if the opportunity cost was worth it

A

the value of our opportunity cost is greater than the value of our current choice we made then it’s a bad decision and if the value of our current choice is better than the opportunity cost it would be a good decision

36
Q

what is demand

A

the quantity that the consumers are willing to spend on a good or service

37
Q

what is derived demand

A

when the demand comes from something else eg printer, printing ink

38
Q

if the price changes in a demand curve what happens

A

causes a movement along the demand curve

39
Q

what if something else changes and prices stay the same

A

causes a shift of the demand curve

40
Q

what is contraction

A

demand decreasing

41
Q

what is expansion

A

demand increases

42
Q

how does a market exist

A

wherever there are buyers and sellers of a particular good buyers DEMANDS goods from the market whilst sellers supply goods to the market

43
Q

what is effective demand

A

the willingness and ability of consumers to purchase goods at different prices

44
Q

composite demand

A

where goods have more than one use

45
Q

what is joint demand

A

the combined demand of two or more interlinked goods

46
Q

what is relationship between price and demand

A

there is an inverse relationship between price and demand

when price goes down demand goes up
lower prices make it more affordable for customers

47
Q

what might cause an shift in demand

A

Population
Income
Related Goods
Advertising
Tax
Expectations

Economics (9 decks)

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