Economics Flashcards
What is the left in economics?
The left tends to MORE government involvement in the economy so EVERYONE can benefit.
What is the right in economics?
The right tends to LESS government involvement and promotes INDIVISUAL GOOD.
Supply
The amount of goods/services being provided by a producer
Demand
How much of a good/service that consumers want to get
Price
The cost of a good/service
Quantity
the amount of a good or service available at a specific price
Producers
Those who produce/supply a good or service
Consumers
those who buy/use a good or service
In a planned economy…
the government is the primary force answering the problem of scarcity
In a market or mixed economy…
indivisuals (buisnesses, corporations, etc), along with other forces, answer the basic problem of scarcity
mixed is a combo of both market & command
More government involvement is a shift to the
left (or towards a planned economy)
Less government involvement is a shift to the
right (or towards a market/mixed economy)
Monopoly
a lack of economic competition to produce the good or service (one company or indivisual in control of a product or service)
a situation where a single seller or producer dominates a particular market
- Microsoft
- Apple
Competition
When there are several producers/suppliers of a good or service in the same market
Rivalry among businesses to sell their products or services.
- Resturaunts
- Gas stations
Pros of Competition
- high profits attract more suppliers
- follows (somewhat) supply and demand cycle
Cons of Competition
- Competition can be high, so there is great pressure to reduce costs amd improve quality
Pros of Monopoly
- High profits
- No competition, so no pressure to reduce costs or improve quality
Cons of Monopoly
- Barriers to entry exclude new suppliers
Consumerism
Encourages the aqusition of goods and services in ever-increasing amounts to support the economy
What are the factors that influence us as consumers and guides our buying?
- Identity/Values
- Government Influence/Legislation
- Standard of Living
- Advertising (producer influence)
- Societal Pressures (ex. boycotting)
When should the government get involved?
- Environmental disasters
- Saving jobs
- To protect the environment
- Consumer protection
- Labour disputes/disruptions
- Affordability
Factors of Production
- Land
- Labour
- Capital
- Entrepreneurship
Boycott
- an organized refusal to interact with a certain group as a punishment
- not purchasing certain products or a certain company’s products usually because of a conflict of ethics
Ethos
- Establishing personal credentials
- Getting your audience to trust you
ethics
Pathos
- inspiring an emotional response
- getting your audience to feel
pity
Logos
- Arguing based on reason and facts
- Getting your audience to think
logic
Advertising
Paid, non- personal communication through various media about a product, or idea that is intended to inform or persuade members of a particular audience.
- Advertising is a means of bringing buyers and sellers together
Comparitive Advertising
- Advertising strategy that emphasizes messages with direct or indirect promotional comparisons between competing brands.
- Market leaders seldom acknowledge competing brands.
ex. pepsi directly includes coca cola in their ads as coca cola is a competing brand. however, since coca cola is a market leader, pepsi doesn’t appear in any of coca cola’s tv advertisements (with the exclusion of social media).
Celebrity Tesimonials
- Use of celebrity spokespeople for products
- Can build brand equity but can hurt brand if celebrity is hit by scandal
Bandwagon Effect
“Everyone’s buying it”
Emotional Appeal
connect with fears and desires
Glittering Generalities
Big promises
Plain Folks Appeal
relates to ordinary people
Scientific Appeal
uses stats and/or data
less popular in advertising
Media Selection
memorize some, not all! don’t worry :)
- Television
- Infomercials
- Radio
- Online
- Billboard
- In Store
- Print
(Magazines
Newspaper
Classified) - Mobile Ads
- Celebrity Branding
- Corporate Sponsorship
- Covert
(Product placement
Brands)
Planned Obsolescence
- “designed for the dump”
- Something is designed to break down so that you will have to replace it
Perceived Obsolescence
- Where goods/services are intentionally changed simply to drive up demand (not always improving function)
- an object may continue to be functional, but it is no longer perceived to be stylish or appropriate and so must be replaced
Tax Evasion
Illegal avoidance of paying taxes by deliberately misrepresenting or concealing income
(definition provided by chat gpt)
Debt/Credit
Money owed or available for borrowing, often used to facilitate purchases or investments
(definition provided by chat gpt)
Taxation
Direct: when taxes are paid directly to the government (or the government takes it themselves)
Example: Income taxes are collected right off your paycheck
Indirect: when taxes are paid to a third party who then passes it on to the government
Example: Sales taxes collected by a business
Collective Bargaining
Negotiations between employers and employees, usually facilitated by unions, to determine wages and working conditions
(definition provided by chat gpt)
Unions
Associations of workers formed to protect and further their rights and interests
(definition provided by chat gpt)
Crown Corporations
Corporations owned by the government to operate commercial enterprises on behalf of the state
(definition provided by chat gpt)
Privately owned
assets/companies/corporations owned by indivisuals, not the government
Publicly owned
assets/companies/corporations owned by the government or state
Progressive taxes
the more you earn the higher percentage you pay
Flat taxes
Everyone pays the same percentage
Consumerism
encourages the acquisition of goods and services in ever-increasing amounts to support the economy
