economics

Question 1

what are the 3 limited factors of production

Answer 1

land- all useful things of nature
labour - all things people do in production of goods/ services
capital - all man made things useful in further production ex buildings, machines, roads, money

Question 2

what is scarcity

Answer 2

when theres limited reasoures with unlimited demand

Question 3

what are the 3 questions used to develop economic system to adress the problem of scarcity

Answer 3

• what to produce
• how to produce it
• who will it be for

Question 4

what is a planned economy

Answer 4

• when theres gov intervention when it comes to disicions
• what to produce- detrmined on gov
• how to produce determined what govement thinks is best intrest employment
• who will it be for- gov will decide

Question 5

what are other terms for a planned ecomony

Answer 5

• command economy
• public enterprise

Question 6

what is a market economy

Answer 6

individialistic based

• what to produce decided by consumer demand
• how to produce it determined by supplier goods ( how much profit made on product
• who gts it - detemined by price system / wages

Question 7

what are other terms that also stand for a market ecomony

Answer 7

• free market
• private enterprise
• free enterprise

Question 8

what is a mixed economy

Answer 8

• it is inbetween a market economy / planned and tries to take the best qualities of each

Question 9

what is inflation

Answer 9

when cost of living and products prices rise

occurs when economy doing good

extreme inflation can be reffered to as overheating as living is becoming difficult

Question 10

what is a deficit

Answer 10

it is the total money IN ONE YEAR that the goverment isnt getting back after giving away money for loans and social programs and such

Question 11

what is debt

Answer 11

it is the total deficit the goverment collected as a whole

Question 12

what is the fiscal policy

Answer 12

• (taxex)
• deals with how the goverment takes in and spends taxes
• gov uses taxes to go to support programs like health care

Question 13

monetry policy

Answer 13

(intrest rates)
- deals with how the goverment sets intrest rates when borrowing money from the gov

• can help control inflation ensuring doesnt go to high/low

Question 14

what is privatization

Answer 14

going form a public to private company

(private compan buys company owned by gov)

Question 15

nationalization

Answer 15

going from private to public

(when individual privatly owned company gets bought by the gov)

Question 16

what does regulation look like

Answer 16

its goverment intervention and when goverment gets involved in the economy

ex) gov says gas has to be x price

Question 17

what does deregulation stand for

Answer 17

• when theres no gov intervention in the economy and doesnt regulate buissneses or anything

ex) gov says can sell gas for whatever and doesnt care

Question 18

what does intrest rates stand for

Answer 18

the addtionally fee that can either go up or down when higher / lower intrest rates

• higher= more expensive to borrow money
• lower+ less expensive to borrow money

Question 19

what does subsidize stand for

Answer 19

is money given to help people or buisnesses from the gov

ex) cant pay rent thats $500 gov will pay $300 and you pay $200

Question 20

what is progressive taxation

Answer 20

its how much money you have to pay in taxes accordign to how much your income is

Question 21

what is a flat tax

Answer 21

• when all individuals pay the same tax rate

ex) everyone pays the 5% gst rate

Question 22

what are tarrifs / prote tionism

Answer 22

tarrifs- are the tax that is put on goods coming into countrys (have up to $200 claim)

protectionism- is policy that there needs to be tarrifs because it protects jobs of citizens in country buying and taking stuff back to

Question 23

what does universality stand for

Answer 23

something that everyone gets ex healthcare

Question 24

what is the buissness cycle

Answer 24

it occurs within market economys because theyre free the go through unemployment/ employment which corrospond in good/ bad cycles

Question 25

what are boom cycles

Answer 25

are good times in the ecomony when theres high employment, peolpe spending money so higher demand for jobs, and theres inflation

Question 26

what happens in the bust cycles

Answer 26

- people not spending as much money so less job demands and cheaper prices for things ( if bust cycle continues can experience recession which if it gets worse an economic depression)

Question 27

when was the great deppresion

Answer 27

was in the 1930s

Question 28

what is privare enterprise (otherwise know as free market/ free enterprise)

Answer 28

it stands for just a buisness ot economic activities that are owned privatley rather than the goverment knowing

Question 29

what philospher contribuited the most to economic beliefs

Answer 29

adam smith wrote book wealth of nations which promotes minimal gov intervention and enlightened many ppl with idea laissez-faire which stands for "hands off" and that it would be best if gov didnt involve themselves as much

Question 30

what was the invisible hand

Answer 30

adam smiths idea that ppl working towards own goal will provide jobs for everyone - didnt believe in charity from gov

Question 31

what is social darwinism

Answer 31

belief through competion only the strongest will survive and believes in survival of the fittest and that shows economic and social progress

Question 32

what does consumer sovertity stand for

Answer 32

that the consumer is the most imposrtant person in the economy and its them who decide what the economy is made of and sold

Question 33

what is incentive

Answer 33

reason why we work so hard to be able to justidy buying private property when we feel good / successful