Economics Basics Flashcards

1
Q

What does scarcity mean

A

The demand for goods or services exceed available supply

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2
Q

What is Opportunity cost?

A

What one must concede to obtain what they desire - the trade off or loss to do something else

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3
Q

What is Perfect information ?

A

Everyone receives the same information at the same time

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4
Q

What is Rationality ?

A

Informed decisions that people make based on the available information

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5
Q

What is monopoly?

A

The only seller of a good or service

They set and control the price

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6
Q

What is duopoly?

A

Two large sellers of a good or service

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7
Q

What is oligopoly?

A

A few large sellers of a good or service

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8
Q

What is polyopoly?

A

No large sellers, but many small sellers

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9
Q

what are the 10 principles of economics

A
  1. People face trade-offs.
  2. The cost of something is what you give up getting it.
  3. Rational people think at the marginal cost and marginal revenue.
  4. People respond to incentives.
  5. Trade can make everyone better off.
  6. Markets are usually a good way to organize economic activity.
  7. Governments can sometimes improve market outcomes.
  8. A country’s standard of living depends on its ability to produce goods and services.
  9. Growth of money leads to inflation
  10. Society faces a short-run tradeoff between Inflation and unemployment
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