Chapter 1 Flashcards by Vicki schenk

How do information streams influence decision-making?

Alters choices, spending, entertainment, and purchases

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What is the primary focus of economics?

Human decision making

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What is the main reason discussed for scarcity?

Understanding economics

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Who introduced the idea of dividing labor into discrete tasks?

Adam Smith

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What is the impact of the division of labor?

Increases production

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What does microeconomics focus on?

Individual agents’ actions

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What determines a nation’s production of goods and services?

Macroeconomic health

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How do economists approach economic issues?

Apply theories to fit the issue

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What characterizes a command economy?

Economic effort for goals set by rulers

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What matters do laws govern in a market-oriented economy?

Private property, violence, contracts

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What factor has encouraged greater trade internationally?

Agreements and treaties

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What concerns have led to pushback against globalization?

Jobs, sovereignty, inequality

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What does scarcity mean?

Wants exceed availability

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Who proposed the division and specialization of labor?

Adam Smith

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What do microeconomics and macroeconomics study?

The same economy

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What determines job availability in an economy?

Macroeconomic health

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What does the economic system include?

Goods, services, buying, selling, employment

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What is useful about rough economic freedom measures?

Discerning trends

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What is a measure of globalization?

Exports

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What does economics study?

Choices under scarcity

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How do Americans use information streams?

Read reviews, check ratings

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What is the ultimate scarce resource?

Time

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In which book did Adam Smith discuss division of labor?

The Wealth of Nations

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Why is specialization effective?

More effective production

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What has the culture of learning in governments led to?

Improvement in lives of poor

What determines household spending?

Budgets and needs/wants

What determines a nation?s standard of living?

Macroeconomic health

Which countries currently have command economies?

Cuba and North Korea

What was the overall trend in economic freedom in recent decades?

Higher level of economic freedom

What are exports?

Goods and services sold abroad

What is the goods and services market?

Firms sell, households buy

What is a factor that affects economic outcomes?

Information dissemination speed

Why is scarcity a problem?

Limited resources and infinite human wants

What is a business's core competency?

Focus on few products

What are the goals for determining macroeconomic health?

Growth, low unemployment, low inflation

Key difference between command and market economies?

Centralized vs. decentralized structure.

What does the export to GDP ratio measure?

Economic production sold abroad

How do farmers decide to plant and harvest today?

Driven by data

What is the purpose of FRED data in economics?

Describes economic issues and problems

What is the result of larger organizations and specialization?

Increased production and consumption

Who is considered one of the greatest economists of the twentieth century?

John Maynard Keynes

What is a key feature of a market economy?

Decentralized decision-making

Why is the U.S. export share lower than the global average?

More division of labor domestically

What can maximizing production efficiently influence?

Farm profitability

What does macroeconomics focus on?

Broad economy issues

What is FRED?

Federal Reserve Bank database

What has been a force against the problem of scarcity?

Division and specialization of labor

Who owns the means of production in a market economy?

Private individuals

What is scarcity?

Wants exceed supply

What does scarcity lead to?

The Problem of Scarcity

What does specialization require?

Trade

What is economics seeking to solve?

Scarcity

What does economics analyze?

Scarcity

How has modern society evolved into a strong economy?

Through specialization

What does a modern economy display?

Division of labor

What types of resources are needed to produce goods and services?

Labor, tools, land, raw materials

What does economics acknowledge about production?

Environmental pollution issues

What does economics explore regarding education?

Developing workers' skills

What causes the economy to speed up or slow down?

Macroeconomic factors

What is a theory in economics?

Simplified representation of interactions

How do economists express theories?

Diagrams, graphs, math equations

Provide an example of a command economy.

Ancient Egypt

What do some experts say about the index's category choices?

Politically biased

What do indices like the Heritage Foundation?s Index of Economic Freedom provide?

Resource for discussion