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EC120 > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

What is Economics

A

The study of the use of scare resources to satisfy unlimited human wants

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2
Q

What are the Factors of production

A

Land, Labour and Capital

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3
Q

Are goods tangible or intangible?

A

Tangible

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4
Q

Are services tangible or intangible?

A

Intangible

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5
Q

Scarcity

A

Implies that choice must be made amongst alternatives, and making choice implies the existence of cost

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6
Q

Opportunity cost

A

Choosing any one alternative is the value of the next alternative given up

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7
Q

What shifts the PPB

A

Economic growth

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8
Q

Four key economic problems

A
  1. What is produced and how
  2. What is consumed by whom
  3. Why are resources sometimes idle
  4. Is productivity capacity growing
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9
Q

Macroeconomics

A

The study of the determination of economic aggregates, such as total output, total employment, and the rate of economic growth

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10
Q

Microeconomics

A

The study of the determination of the prices and quantities of specific products and factors of production

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11
Q

An economy based on free market transactions is

A

Self-organizing

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12
Q

Efficiency

A

Make resources available with the least amount of resources

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13
Q

3 types of decision makes

A

-consumers
-producers
-government

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14
Q

How decisions are made

A

-Maximizing decisions
-Marginal decision

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15
Q

You should buy if

A

Marginal benefit>Marginal Costs

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16
Q

What promotes efficiency

A

Specialization and division of labour

17
Q

Globalization

A

Increases importance of international trade

18
Q

Types of economic systems

A
  1. Traditional
  2. Command
  3. Free Market
  4. Mixed
19
Q

Who is involved in the great debate and what do they support

A

Adam Smith (free market)
Karl Marx (command)

20
Q

Traditional economy

A

Based on tradition

21
Q

Command economy

A

Determined by central authority

22
Q

Free market economies

A

Decisions are made by private households/firms

23
Q

Mixed ecomonies

A

Decisions are made by firms, households and governments

EC120 (1 decks)

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