Economic Concepts Flashcards
What is the meaning of a graphed plot with a negative slope?
The two variables move in opposite directions (i.e., the dependent variable decreases as the independent variable increases).
Identify the “X” axis and “Y” axis of a graph.
“X” axis is the horizontal line; “Y” axis is the vertical line. (To help remember, the “Y” has a vertical element to it.)
What is microeconomics?
The economic activities of distinct decision-making entities, including individuals, households and business firms.
What does “ceteris paribus” mean, as used in economics?
Assumption that any influences other than the variable(s) being considered are held constant. Literally, “all else being equal.”
Define “economics”.
Study of the allocation of scarce economic resources among alternative uses.
What is macroeconomics?
The economic activities and outcomes of a group of entities taken together, typically of an entire nation or major sectors of a national economy.
What are the characteristics of a Command economic system?
Government largely determines the production, distribution and consumption of goods and services (e.g., Communism and Socialism).
What is the role of graphs in economics?
Graphs show the relationship between two variables, usually referred to as the independent and the dependent variables.
Identify the “Intercept” on a graph.
The point at which the plotted line intersects the “Y” axis (i.e., at the zero point on the “X” axis).
What are the major types (extremes) of economic systems?
Command Economic System;
Market (Free-enterprise) Economic System.
What is international economics?
Economic activities that occur between nations and outcomes that result from those activities.
What is the meaning of a graphed plot with a positive slope?
The two variables move in the same direction (i.e., the dependent variable increases as the independent variable increases).
Identify the major divisions of the field of economics.
Microeconomics;
Macroeconomics;
International economics.
What is a time-series graph?
A graph showing changes in a variable over time. Commonly, time is considered the independent variable and plotted on the horizontal “X” axis.
What are the characteristics of a Market (free-enterprise) economic system?
Distinct entities determine production, distribution and consumption in an open market (e.g., Capitalism).
