Economics Flashcards

1
Q

circular flow

A

the interaction btw those that make economic decisions (households/ businesses) and those that provide goods and services

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2
Q

supply

A

what producers make

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3
Q

demand

A

what consumers ask/want

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4
Q

law of supply

A

price increase - quantity increases
producers benefit from high price

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5
Q

law of demand

A

price increase - quantity decreases
consumers harmed by high opportunity cost

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6
Q

cost benefit analysis

A

the gains and loses of an economic decision

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7
Q

factor market

A

market where factors of production are bought/sold

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8
Q

trade cap

A

limits the amount of imported/exported gods

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9
Q

Consumer Price Index (CPI)

A

measures country’s economy based on how much consumers spend

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10
Q

laissez faire

A

Adam Smith’s invisible hand where gov does not interfere with economy

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11
Q

factors of production

A

land, labor, entrepreneur, capital

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12
Q

absolute advantage

A

who can produce more of a good service with the same amount of resources

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13
Q

comparative advantage

A

who can produce a good or service at a lower opportunity cost than others

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14
Q

surplus

A

having too much of a good`

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15
Q

perceived value

A

how desirable a product is to a consumer

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16
Q

market economy

A

privately owned businesses

17
Q

traditional economy

A

goods and services made by each family and they can exchange to gain other goods

18
Q

mixed economy

A

privately owned businesses operate under gov regulation

19
Q

command economy

A

gov controls economy

20
Q

trade deficit

A

buying more than selling

21
Q

price ceiling

A

max price for good regulated by gov

22
Q

Supply Side Economics/ Reaganomics

A

gov intervention should help producers supply more

23
Q

Disequilibrium

A

having too much of a supply or having too much demand

24
Q

Gross Domestic Product (GDP)

A

everything a country makes in a year

25
economies of scale
price fall due to increase in production
26
deficit
not having enough of supply
27
specialization/division of labor
companies specialize in making the best product to make the most money and get other goods through trade
28
Keynesian economics
29
dividend
percentage of profit
30
share
small percentage of the company
31
means of production
non-human resources used to produce (tools)
32
labor force
everyone that works, wants to work
33
subsidies
gov pays industry to reduce costs
34
stock market
buy and sell company shares
35
free trade
country can trade with other countries without restrictions