Basic Economic Principles And Terms Flashcards

1
Q

What is a stakeholder?

A

An individual or group with a particular interest or influence on a particular activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the four main stakeholders

A

Government
Firms
Workers
Consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is GDP?

A

The value of goods and services provided by the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What outcomes do the governement want from the economy?

A

Good welfare and high quality of life for their population
Taxes paid honestly
An increasing GDP
Foreign investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What outcomes do consumers want from the economy?

A

A wide range of products
Low prices and VAT
Readily available goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What outcomes do workers want from the economy?

A
Fair working hours
Work-life balance
A variety of oppurtunities such as promotion
A good wage
Lower income taxes
Job security
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What outcomes do firms want from the economy?

A
Cost effective workers to decrease unit costs
Lower coorporation tax
Higher sale revenue
Minimum costs
Maximise profit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the factors of production and what do they mean?

A

Land
Labour
Capital
Enterprise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is land and give examples

A

An area of available natural resources to produce products e.g fertile land, minerals, fish forestry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is labour and what is the reward for it?

A

People available to work and do tasks, reward is wages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is capital and what is the reward from it?

A

Capital is the stock of goods to make other goods like machinery. The reward is interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is enterprise and what is its reward?

A

Enterprise brings the other factors of production together into a complete production - ‘risk taker’. The reward is profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the reward that comes from land?

A

Rent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How can capital be improved?

A

Technological advances, servicing and looking after equipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How can enterprise be improved?

A

By having more information to help inform descions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How can we improve the use of land?

A

By using renewable resources like water

17
Q

How can labour be improved so production capacity is increased?

A

Division

Education

18
Q

What is the productive capacity?

A

When the maximum amount of the factors of prosuction are combined in their most efficient way

19
Q

What is oppurtunity cost?

A

The next best alternative lost as a result of a person / group of people taking their first choice option

20
Q

What are economic goods?

A

Goods which are scarce and therefore have an oppurtunity cost

21
Q

What are free goods?

A

Goods which have no oppurtunity cost

22
Q

What are capital goods?

A

Business goods which produce other goods and services

23
Q

What are consumer goods?

A

Goods which are used up

24
Q

What is economics?

A

The study of production, distribution and consumption of wealth in human society

25
What are the three aspects of the economic problem?
Limited/scarce resources Production Unlimited wants and needs
26
What is a PPF?
A production possibility frontier
27
How does a PPF demonstrate oppurtunity cost?
It compares the production of two products at their maximums. It allows you to see what is lost somewhere else on the curve
28
In a curved PPF, why doesn't the oppurtunity cost remain the same along the curve?
Because the production of two products aren't identical | And not all inputs are equally suited
29
When might PPFs shift outwards?
If population increases Employment rate increases Technology advances
30
When might PPFs shift inwards?
Population decrease
31
Which exonomic concepts can the PPF model illustrate?
Oppurtunity cost Workforce Factors of production
32
What does reallocating scarce resources from ome product to another involve?
An opportunity cost
33
What allows countries to consume beyond their own PPF?
Trade
34
If both goods in a PPF were produced more, what would this represent?
An improvement in welfare | A gain in allocative efficiency