Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > Chapter 1 -6 > Flashcards

Chapter 1 -6 Flashcards

1
Q

Define scarcity

A

A situation where there is not enough to satisfy everyone’s wants and needs

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

Define scrace

A

Insufficient to meet demand

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

Explain economic goods (3)

A

Requires the use of scarce resources

can be sold to make profit (monetary value)

Making/consuming them involves opportunity cost

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

Explain free goods (3)

A

does not use scarce goods (no O.C)

Adds no monetary value to the country’s GDP

infinetely abundant

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

What is the economic problem

A

unlimited wants exceeding finite resources

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

What are the 4 factors of productions (4)

A

land

labour

capital

enterprise/entrepreneurship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define land (FoP)

A

gifts of nature available for production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define labour (FoP)

A

human effort used in producing goods and services

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

Define capital (FoP)

A

human made goods used in production

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

Define enterprise (FoP) (2)

A

willingness and ability to bear uncertain risks and to make decisions in a business

Brings together the other 3 factors of production

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

Define consumer goods

A

goods and services purchased by households for their own satisfaction

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

What are the two types of mobility of the factors of production (2)

A

Occupational

geographical

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

Define occupationally mobile

A

Can be used for different purposes

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

Define geographically mobile

A

capable of moving from one location to another

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

Define productivity

A

term used to define the output per factor of production in a given amount of time

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

What is investment

A

spending by firms on capital

17
Q

What is depreciation

A

Capital getting worn out and broken

18
Q

What is gross investment

A

new capital

19
Q

what is net investment

A

total increase or decrease in capital stock

20
Q

Equation for net investment

A

Gross investment - depreciation = net investment

21
Q

Define negative net investment

A

quantity of capital falling overtime

22
Q

Define opportunity cost

A

The value of the next best alternative foregone when a decision is made

23
Q

Define Production possbility curve

A

A simple model showing the combinations of output of two goods which can be produced by the resources (FoPs) available in an economy

24
Q

Define economic agents

A

decision makers in an economy (those who undertake economic activity)

25
Q

Who are the 3 economic agents (3)

A

Governments

households/individuals

producers

26
Q

What are the 3 types of households/individuals (economic agents) (3)

A

consumers

workers

savers

27
Q

Define stakeholders

A

any individual/group/organisation that is affected by an economic decision

28
Q

Define economic systems

A

the institutions, orgnaisations and mechanisms that influence economic behaviour and determine how resources are allocated

29
Q

What are the 3 key allocation decisions

A

what to produce?

How to produce it?

Who is to receive the products produced?

30
Q

Define directives

A

state instructions given to state owned enterprises

31
Q

causes of geographical immobility of labour (3)

A

Differences in the price and availailuty of housing in different areas and countries

family ties

linguistic barriers

32
Q

How is the quantity of labour determined? (4)

A

the size + age structure of population

retirement age

school leaving age

attitude to working women

33
Q

number of hours which people work is influenced by: (5)

A

the length of the average working day

whether they work full or part-time

the duration of overtime

the length of holidays taken by workers

the amount of time lost through sickness and illness

Economics (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions