Economics Basics Flashcards
1
Q
What does scarcity mean
A
The demand for goods or services exceed available supply
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
3
Q
What is Perfect information ?
A
Everyone receives the same information at the same time
4
Q
What is Rationality ?
A
Informed decisions that people make based on the available information
5
Q
What is monopoly?
A
The only seller of a good or service
They set and control the price
6
Q
What is duopoly?
A
Two large sellers of a good or service
7
Q
What is oligopoly?
A
A few large sellers of a good or service
8
Q
What is polyopoly?
A
No large sellers, but many small sellers
9
Q
what are the 10 principles of economics
A
- People face trade-offs.
- The cost of something is what you give up getting it.
- Rational people think at the marginal cost and marginal revenue.
- People respond to incentives.
- Trade can make everyone better off.
- Markets are usually a good way to organize economic activity.
- Governments can sometimes improve market outcomes.
- A country’s standard of living depends on its ability to produce goods and services.
- Growth of money leads to inflation
- Society faces a short-run tradeoff between Inflation and unemployment
