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English Year 11 > Economics Midterm > Flashcards

Economics Midterm Flashcards

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Proverbs and Idioms flashcards
1
Q

Wants

A

Things I want to have

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2
Q

Needs

A

Things I need to live

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3
Q

Wants and needs

A

To economists everything other than basic survival needs is considered a want. People want such items as new cars, new clothes, and the latest technology. What begins as a luxury, or a want becomes to many people a necessity.

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4
Q

Scarcity

A

condition of not being able to have all the goods and services one wants, because wants exceed what can be made from all available resources at any given time
Scarcity means that people do not have and cannot have enough income, time, and other resources to satisfy their every want.

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5
Q

Factors of production:

A

Land, Labor, capital, entrepreneurship

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6
Q

Land

A

Natural resources present without human intervention.

Examples include: land, water, fish, animals, forests, and mineral deposits.

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7
Q

Labor

A

The work that people do.

Labor includes anyone who works to produce goods and services. What are goods and services? Goods are tangible items that people buy. Services are activities done for others for a fee.

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8
Q

Capital

A

Previously manufactured goods used to make other goods and services.

For many, when they think of capital they always think of money but in economics, that’s not the case. Capital goods are machines, buildings, and tools. Capital is also increased productivity - the ability to produce greater quantities of goods and services in better and faster ways.

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9
Q

Entrepreneurship

A

The ability of risk-taking individuals to start new businesses, to introduce new products and processes, and improve management techniques. In order to make profits

Entrepreneurship involves initiative and willingness to take risks in order to reap profits.

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10
Q

Trade-offs

A

sacrificing one good or service to purchase or produce another

Scarcity forces people to make choices about how they will use their resources. The economic choices people make involve exchanging one good or service for another. Exchanging one thing for the use of another is called a trade-off. Individuals, families, businesses, and societies are forced to make trade-offs every time they use their resources in one way and not another.

The result of a trade-off is what you give up in order to get or do something else. Decisions, decisions, decisions

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11
Q

Opportunity cost

A

Opportunity cost is the value of the next best alternative that had to be given up to do the action that was chosen. You may have many trade-offs but whatever you consider the single next best alternative is the opportunity cost. A good way to think about opportunity cost is to realize that when you make a trade-off, and you always make trade-offs, you lose. What do you lose? You lose the ability to engage in your next highest alternative.

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12
Q

Example of trade-off and opportunity cost

A

You want to listen to some music. Who do you listen to? Do you turn on a music streaming service or do you listen to music you have downloaded? You have to make a trade-off and what you don’t listen to is your opportunity cost. In economics, therefore, opportunity cost is always an opportunity that is given up.

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13
Q

Production possibilities curve

A

Economists use a model called the production possibilities curve to show the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time. This curve can help people and businesses determine how much of each item to produce , thus revealing the trade-offs and opportunity costs involved in each decision.

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14
Q

Microeconomics

A

Microeconomics is the branch of economic theory that deals with behavior and decision making by small units such as individuals and firms

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15
Q

Macroeconomics

A

Macroeconomics is the branch of economic theory dealing with the economy as a whole and decision making by large units such as government.

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16
Q

Economic models

A

The theories that economists use in their work are called economic models, which are simplified representations of the real world. Solutions that emerge from testing economic models often become the basis for actual decisions by private businesses or government agencies.

Models can show visual representations of consumer, business, or other economic behavior. The production possibilities curve is an economic model. One of the most common economic models is a line graph (example below) explaining how consumers react to changes in the prices of goods and services.

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17
Q

Economics

A

the study of how individuals, families, businesses, and societies use limited resources to fulfill their unlimited wants

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18
Q

Goods

A

tangible objects that can satisfy people’s wants or needs

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19
Q

Services

A

actions that can satisfy people’s wants or needs

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20
Q

Productivity

A

the amount of output (goods and services) that results from a given level of inputs

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21
Q

Technology

A

advance in knowledge leading to new and improved goods and services and better ways of producing them

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22
Q

Economy

A

the production and distribution of goods and services in a society

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23
Q

Economic model

A

a theory or simplified representation that helps explain and predict economic behavior in the real world

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24
Q

Hypothesis

A

an assumption involving two or more variables that must be tested for validity

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25
Q

The study of how individuals, families, businesses and societies use limited resources to fulfill their unlimited wants is

A

Economics

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26
Q

________________ means that people do not have and cannot have enough income, time and other resources to satisfy their every want.

A

Scarcity

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27
Q

A company’s office building is an example of

A

capital

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28
Q

Everything other than a basic survival need is considered a

A

want

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29
Q

Sacrificing one good or service to purchase or produce another is known as

A

Trade-off

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30
Q

Economic system

A

way in which a nation uses its resources to satisfy its people’s needs and wants

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31
Q

Traditional economy

A

system in which economic decisions are based on customs and beliefs that have been handed down from generation to generation

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32
Q

Command economy

A

system in which the government controls the factors of production and makes all decisions about their use

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33
Q

Market economy

A

system in which individuals own the factors of production and make economic decisions through free interaction while looking out for their own and their families’ best interests

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34
Q

Market

A

freely chosen activity between buyers and sellers of goods and services

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35
Q

Circular flow of economic activity

A

economic model that pictures income as flowing continuously between businesses and consumers

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36
Q

mixed economy

A

system combining characteristics of more than one type of economy

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37
Q

capitalism

A

economic system in which private individuals own the factors of production

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38
Q

Laissez-faire

A

economic system in which the government minimizes its interference with the economy

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39
Q

free enterprise system

A

economic system in which individuals own the factors of production and decide how to use them within legal limits; same as capitalism

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40
Q

Profit

A

money left after all the costs of production - wages, rents, interest, and taxes - have been paid

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41
Q

Profit incentive

A

desire to make money that motivates people to produce and sell goods and services

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42
Q

Private property

A

whatever is owned by individuals rather than by government

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43
Q

Competition

A

rivalry among producers or sellers of similar goods and services to win more business

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44
Q

A system in which government lets people and businesses make their own decisions without government restraints is

A

Laissez faire system

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45
Q

Another name for a Market Economy is

A

Capitalism

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46
Q

When considering for whom it should be produced, you must consider

A

Who gets the new item

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47
Q

When considering what should be produced, you must consider

A

How to use limited resources

48
Q

This is a rivalry among producers or sellers of similar goods and services to win more business.

A

competition

49
Q

Individuals have little if any influence over how the basic economic questions are answered.

A

Command

50
Q

Effective competition requires

A

A large number of independent sellers

51
Q

Business owners in Metropolis can decide what business they wish to start, what they want to produce, how they will produce it, how much they want to produce, and to whom they want to sell their production. What economic system is this?

A

Market

52
Q

All are true of a Mixed Economy except

A

changes are slow

53
Q

Market

A

the process of freely exchanging goods and services between buyers and sellers

54
Q

Voluntary exchange

A

a transaction in which a buyer and a seller exercise their economic freedom by working out their own terms of exchange

55
Q

Demand

A

the ability and willingness of people to purchase goods and services at various prices during a specific period of time

56
Q

Law of demand

A

refers to how people react to change in price. It says that when the price of a good or service increases, the quantity demanded of that product or service decreases

57
Q

Demand curve

A

downward-sloping line that shows in graph form the quantities demanded at each possible price

58
Q

Supply

A

the amount of product that producers are willing and able to offer for sale at various prices at a specific period of time

59
Q

Law of supply

A

when the price of goods decreases, the quantity supply decreases and when the price of the product increases the quantity supply also increases, all things remaining the same

60
Q

Supply curve

A

upward-sloping line that shows in graph form the quantities supplied at each possible price

61
Q

Equilibrium price

A

the price at which quantity demanded by consumers equals the quantity that is supplied by producers

62
Q

Elasticity of demand

A

the degree of responsiveness of change in quantity demanded to change in price

63
Q

Elasticity of supply

A

the degree of responsiveness of change in quantity supplied to a change in price

64
Q

Government just gave subsidies to Farmers for the production of poultry products. What will happen to the supply of poultry products?

A

It will shift to the right

65
Q

What happens to the demand for Pepsi when the price of Coca Cola increase?

A

Increase in Demand of Pepsi

66
Q

When the price of cars increases, the quantity demanded of cars

A

Decreases

67
Q

Which of the following will cause the supply curve to shift to the right?

A

Decrease in the input cost for producing that good

68
Q

At equilibrium price, which of the following will NOT happen?

A

shortage or surplus

69
Q

A decrease in the price of gas will:

A

Decrease the quantity Supplied

70
Q

When an increase in the price of one good leads to a decrease in demand for the other, the two goods are:

A

Complementary

71
Q

When the price is above the equilibrium price, what will happen?

A

Excess

72
Q

Entrepreneur

A

person who organizes, manages, and assumes the risks of a business in order to gain profits

73
Q

startup

A

a beginning business enterprise

74
Q

Small business incubator

A

private or government-funded agency that assists new businesses by providing advice or low-rent buildings and supplies

75
Q

Inventory

A

extra supply of the items used in a business, such as raw materials or goods for sell

76
Q

receipts

A

income received from the sale of goods and/or services

77
Q

Sole proprietorship

A

business owned and operated by one person

78
Q

Proprietor

A

owner of a business

79
Q

Unlimited liability

A

requirement that an owner is personally and fully responsible for all losses and debts of a business

80
Q

Assets

A

all items to which a business or household holds legal claim

81
Q

Partnership

A

business that two or more individuals own and operate

82
Q

Limited partnership

A

special form of partnership in which one or more partners have limited liability but no voice in management

83
Q

Joint venture

A

partnership set up for a specific purpose just for a short period of time

84
Q

Corporation

A

type of business organization owned by many people but treated by law as though it were a person

85
Q

Stock

A

share of ownership in a corporation that entitles the buyer to a certain part of the future profit and assets of the corporation

86
Q

Limited liability

A

requirement in which an owner’s responsibility for a company’s debts is limited to the size of the owner’s investment in the firm

87
Q

Common stock

A

shares of ownership in a corporation that give stockholders voting rights and a portion of future profits

88
Q

Dividend

A

portion of a corporation’s profits paid to its stockholders

89
Q

Preferred stock

A

shares of ownership in a corporation that give stockholders a portion of future profits but no voting rights

90
Q

Franchise

A

contract in which one business (franchiser) sells to another business (franchisee) the right to use the franchiser’s name and sell its products

91
Q

One of the advantages of being in a partnership is

A

Losses are shared

92
Q

I am a senior in high school who earns spending money by doing yard work for my neighbors. I have decided that I could easily support myself in this business when I graduate. What type of business organization should I choose?

A

Sole proprietorship

93
Q

A beginning enterprise is known as a

A

Startup

94
Q

To form a corporation you must do all but which one?

A

Form a partnership

95
Q

I am 35 years old. For ten years I have been running a delivery service. Three years ago, I purchased another vehicle and hired one person. I now have enough demand for my services that I need to hire five more people and purchase vehicles for them. I do not have the money to invest in five vehicles. What type of business organization should I choose to help me raise the necessary money?

A

Corporation

96
Q

One advantage of a corporation is

A

They can handle large and complicated operations

97
Q

My business partner and I are 25 and 26 years old. We run a small but growing business. We make cupcakes and sell them around our city. We are now getting requests for our cupcakes in the surrounding cities. If we want to meet this demand, we will need a larger production space, more employees, and a means of delivery. What type of business organization should we form?

A

Corporation

98
Q

You have a great idea for a business but need help to get it started. Who can you turn to for help?

A

Small business incubator

99
Q

I am 43 years old. My best friend and I have been helping people who are unable to get out of their homes by doing grocery shopping and running other errands. We have decided to turn this into a formal business. What type of organization should we choose?

A

Partnership

100
Q

I am a 40-year-old real estate salesperson. I have just passed the state examination to be a real estate broker, which means I can now work on my own. I plan to leave the company I work for and open my own office. What type of business organization should I choose?

A

Sole proprietorship

101
Q

Market structure

A

the extent to which competition prevails in particular markets

102
Q

Perfect competition

A

market situation in which there are numerous buyers and sellers, and no single buyer or seller can affect price

103
Q

Monopoly

A

market situation in which a single supplier makes up an entire industry for a good or service with no close substitutes

104
Q

Barriers to entry

A

obstacles to competition that prevent others from entering a market

105
Q

Oligopoly

A

market situation in which industry dominated by a few suppliers who exercise some control over price

106
Q

Product differentiation

A

manufacturers’ use of minor differences in quality and features to try to differentiate between similar goods and services

107
Q

Monopolistic competition

A

maker situation in which a large number of sellers offer similar but slightly different products and in which each has some control over price

108
Q

Which is not a condition in pure competition?

A

No substitutes

109
Q

Which is not a condition in a monopoly?

a) Complete control of market price
b) Geographic monopoly
c) No substitutes
d) Single seller

A

Geographic monopoly

110
Q

Obstacles to competition that prevent others from entering a market are known as

A

Barriers to entry

111
Q 
Which is not a type of monopoly?
  Geographic monopoly 
  Government monopoly 
  Technological monopoly 
  Competition monopoly
A

Competition monopoly

112
Q 
Which is not a condition in an oligopoly?
  Non-price competition 
  Substitutions 
  Barriers to entry 
  Interdependence
A

Substitutions

113
Q 
Which is not a condition of monopolistic competition?
  Numerous sellers 
  Some control over price 
  Differentiated products 
  Government regulations
A

Government regulations

114
Q 
The extent to which competition prevails in particular markets is known as
  Perfect competition 
  Free enterprise system 
  Market structure 
  Monopoly
A

Market structure

115
Q 
Manufacturers’ use of minor differences in quality and features to try to differentiate between similar goods and services is known as
  Product differentiation 
  Oligopoly 
  Perfect competition 
  Command economy
A

Product differentiation

116
Q

Market situation in which a single supplier makes up an entire industry for a good or service with no close substitutes is

A

monopoly

117
Q

Market situation in which industry dominated by a few suppliers who exercise some control over price is

A

Oligopoly

English Year 11 (2 decks)

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