econ quiz 1 Flashcards
1
Q
GDP
A
Gross Domestic Product
2
Q
NDP
A
Net Domestic Product
3
Q
PI
A
Personal Income
4
Q
DI
A
Disposable Income
5
Q
Economics
A
A social science concerned with making optimal choices under conditions of scarcity.
6
Q
What intensifies scarcity?
A
- Unlimited human wants
- Inefficient use of resources
- Misallocation of resources
7
Q
Microeconomics
A
The study of the individual consumer, firm, or market.
8
Q
Macroeconomics
A
The study of the entire economy or a major aggregate of the economy.
9
Q
4 sectors:
A
household, government, business, foreign
10
Q
Free market economy
A
- Individual Capitalism
- U.S., Hong Kong, U.K.
- Resources privately owned
- They choose what they want to do with the resources
- Individual
11
Q
State directed free market economy
A
- Communion capitalism
- Japan, Germany, South Korea
- Think of community first
12
Q
Social command
A
- Communism
- U.S.S.R
- Incentive to work is low
- No market
13
Q
Mixed Economy
A
- France, Sweden, Canada
- Gov. controls all resources (electricity, gas)
- Can own properties, businesses
14
Q
Economic Goals
A
- Economic Growth
- Economic Security
- Full employment
- Economic Freedom
- More equitable distribution of income
- Price stability
15
Q
The five fundamental questions:
A
- What goods and services will be produced?
- How will the goods and services be produced?
- Who will get the goods and services?
- How will the system accomodate change?
- How will the system promote progress?
