Economics Flashcards
Economy
An area where people produce or manufacture goods and services
Economics
A social science study that studies how people satisfy their unlimited needs and wants with limited resources
Needs
Goods and services people can’t live without
Wants
Goods and services that people can live without
Factors of production
Land, labour, capital, Enterpreneurship
Social
Factors related to scarcity such as human welfare, community and economic activities that affect people
Economic production
Production, consumption and exchange
Micro-economics
Studies economic units like businesses, consumers and marketing. It focuses on the internal factors and external influences
Macroeconomics
Focuses on overall economy all external factors and internal influences that cannot be controlled such as inflation, unemployment and economic growth
Deduction
Using past data to describe current patterns and trends
Positive statement
A fact that can be proved or disproved
Model
Used to explain therios or predict models
Negative statement
Opinion or value of judgement
Absolute scarcity
When the resource is unavailable regardless of money
Relative scarcity
When resources are available but there are limited means
Economic goods
Goods that are scarce and have a price
Infrastructure
Facilities that are provided by the state to ensure economic authority can take place
