Chapter 1 - Intro Flashcards
What are the production decisions?
What, when, how, for whom
What is specialization?
When workers or firms focus on a particular task for which they are well suited within the overall production process
What is a circular flow diagram?
A diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labour market
Economies of scale
When the average cost of producing each individual unit declined as total output increases
Fiscal policy
Economic policies that involve government spending and taxes
Globalization
The trend in which buying and selling in markets have increased across the boarders
GDP
Gross domestic product is the measure of the size of total production in a given economy
Scarcity
When man wants for goods and services exceed the available supply
Traditional economy
Typically the agriculture economy when things are done the same as they have always been done
Underground market
Is where the buyers and sellers make transactions in violation of one or more government regulations
Paradox of choice
Thinking about if less is more.
What are three key points to remember about economics?
Economics can help make better decisions
Specialization increases output
Opportunity cost matters
What is economics?
The study of trade offs
