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SECOND SEM > APPLIED ECONOMICS > Flashcards

APPLIED ECONOMICS Flashcards

1
Q

The study of how society manages its resources.

A

Economics

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2
Q

It is the study of choice under the conditions of scarcity.

A

Economics

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3
Q

Is a social science that deals with the two extremes: scarce resources and unlimited human demands.

A

Economics

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4
Q

It is a scientific study which deals with how individuals and society in general makes choices.

A

Economics

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5
Q

According to _______, Economics is the study of how society manages its resources.

A

Mankiw

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6
Q

_____ and ______ states that economics is the study of choice under the conditions of scarcity.

A

Hall, Leiberman

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7
Q

Economics, according to _____, is a scientific study which deals with how individuals and society in general makes choices.

A

Sicat

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8
Q

It is the understanding of how society allocates its resources under the condition of scarcity.

A

Economics

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9
Q

Is is defined as the limited nature of society’s resources.

A

Scarcity

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10
Q

It is when resources are being allocated in the most efficient manner.

A

Full Production

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11
Q

All employed resources are used so that they provide the maximum possible satisfaction of our material wants.

A

Full Production

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12
Q

Includes physical resources (land and capital) and human resources (labor and entrepreneurial ability).

A

Full Production

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13
Q

It is when a society’s available human resources are being maximized efficiently.

A

Full employment

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14
Q

It is a condition of an economy in which all qualified people who want to work can find employment at customary wage rates.

A

Full employment

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15
Q

Without it, there would be no need for production and distribution since the goal of economics is to suffice the consumer wants and needs.

A

Consumption

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16
Q

It is the ulitilization of a good or a service for one’s very own satisfaction.

A

Consumption

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17
Q

Economic resources are also know as ______.

A

Factors of production

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18
Q

What are the four factors of production?

A

Land, Labor, Capital, Entrepreneurship

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19
Q

The physical space on which production takes place, as well as useful materials – natural resources – found under it or in it, such as crude oil, iron, coal, or fertile soil.

A

Land

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20
Q

______ refers to the time and effort, both physical and mental, spent in producing goods or services.

A

Labor

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21
Q

This is also termed as human resources.

A

Labor

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22
Q

Capital has two economic types as a factor of production.

A

Physical capital and human capital

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23
Q

______ consists of things like machinery and equipment, factory buildings, computers and even hand tools like hammers and screwdrivers.

A

Physical capital

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24
Q

Refers to the skills and knowledge possessed by workers.

A

Human capital

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25
Q

The ability and willingness to combine the other resources – land, labor, and capital – into a productive enterprise.

A

Entrepreneurship

26
Q

It is a condition of an economy in which all qualified people who want to work can find employment at customary wage rates.

A

Full employment

27
Q

______ does not imply 100% employment since allowances must be made for frictional employment and unemployment and seasonal factors.

A

Full employment

28
Q

It is what we must forego when we make a choice.

A

Opportunity cost

29
Q

When making any decision, such as whether to attend college, decision-makers should be aware of the ______ that accompany each possible action.

A

Opportunity cost

30
Q

It is the allocation of the total product (money incomes) among factors of production.

A

Distribution

31
Q

In general theory, each unit of output corresponds to a unit of income.
Land – ______
Labor – ______
Capital – ______
Entrepreneurship – ______

A

Land – RENT
Labor – WAGES
Capital – INTEREST
Entrepreneurship – PROFIT

32
Q

Since economics emphasizes on maximizing the scarce resources it concerns the production, distribution and consumption of goods and services. This is vital because once resources are improperly managed, people loses their opportunity to enjoy one’s benefit.

A

The concerns of economics

33
Q

Due to the problem of scarcity, every ______ needs to function to satisfy societal needs.

A

economic system

34
Q

Given such scarce resources, it believed that choices must be made regarding: ______, ______, ______

A

What to produce and how much of each commodity to produce.
How to produce it.
For whom to produce.

35
Q

It refers to the way in which the resources of a country are used to produce goods and services, and the manner in which these goods and services are distributed for consumption.

A

economic system

36
Q

An economic system is a mechanism which deals with the ______, ______ and ______ of goods and services in a particular society.

A

production, distribution, consumption

37
Q

Different types of economic system.

A

Capitalist economy/Capitalism, Socialist economy/Socialism, and Mixed economic system.

38
Q

The system under which economic system is controlled and regulated by the government so as to ensure welfare and equal opportunity to the people in a society.

A

Socialist economy/ Socialism

39
Q

It is the system in which means of production are owned and managed by the government.

A

Socialist economy/Socialism

40
Q

Eg: Cuba and North Korea

A

Socialist economy/Socialism

41
Q

Is an economic system based on private ownership and the freedom of individuals to conduct their economic affairs without interference from government bodies or other groups.

A

Capitalism

42
Q

A great deal of freedom of choice exercised by consumers and business firms in the market for commodities and resources.

A

Capitalist economic system

43
Q

Eg: USA, Australia, Japan, Canada, etc.

A

Capitalist economy/ Capitalism

44
Q

The capitalist economy is also known as the _______.

A

free exchange economy

45
Q

Also known as free exchange economy.

A

Capitalist economy

46
Q

Freedom to own property, freedom to buy and sell, and freedom from government interference in the economic aspect of each individual’s life.

A

Capitalist economy/Capitalism

47
Q

Main Features of Socialist Economy: 5

A

•Economic, Social and Political Equality
•No Competition
•Positive Role of Government
•Work and Wages According to Ability and Needs
•Maximum Social Welfare

48
Q

Main Features of Mixed Economic System: 3

A

•Co-existence of Private and Public Sector
•Check on Economic Inequalities
•Control of Monopoly Power

49
Q

Under socialism, there is almost equality between rich and poor. There is no problem of class struggle.

A

Economic, Social and Political Equality

50
Q

Unlike capitalistic economy, there is no cut throat competition. It means lack of competition as state is the sole entrepreneur.

A

No Competition

51
Q

In socialism, government plays significant role in decision making. Thus, government has complete control over economic activities like distribution, exchange, consumption, investment and foreign trade etc.

A

Positive Role of Government

52
Q

It means that there is no scope of exploitation of labour class. Government keeps a close eye on the needs of the poor masses while formulating plans.

A

Maximum Social Welfare

53
Q

Under the mixed economic system, government takes huge initiatives to control monopoly practices among the private entrepreneurs through effective legislative measures.

A

Control of Monopoly Power

54
Q

It is a mixture of capitalism and socialism.

A

Mixed Economic System

55
Q

Under this system there is freedom of economic activities and government interferences for the social welfare.

A

Mixed Economic System

56
Q

Hence it is a blend of both the economies.

A

Mixed Economic System

57
Q

E.g. India—developing country, UK & USA—developed countries, etc.

A

Mixed Economic System

58
Q

According to _______, “Mixed economy is that economy in which both public and private sectors cooperate.”

A

Prof. Samuelson

59
Q

_______ is that economy in which both public and private sectors cooperate.

A

Mixed economy

60
Q

In public sector, industries like defence, power, energy etc., are set up. On the other hand, in private sector all the consumer goods industries, agriculture, small-scale industries are developed.

A

Co-existence of Private and Public Sector

61
Q

In this mixed economic system, government takes several measures to reduce the gap between rich and poor through progressive taxation on income and wealth. The subsidies are given to the poor people and also job opportunities are provided to them. Other steps like old age pension, free medical facilities and free education are also taken to improve the standard of poor people.

A

Check on Economic Inequalities:

SECOND SEM (2 decks)

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