Economics overview Flashcards
1
Q
What is Economics?
A
Study of humans and their interactions with goods and services.
2
Q
What is the GDP?
A
Gross Domestic Product.
The total amount of goods produced in an economy within a year
3
Q
What is in the 5-sector flow of income
A
individuals, firms, fininical, govermenet, overseas
4
Q
What is the private sector?
A
individuals, firms, finical
5
Q
What is the public sector?
A
Goverment
6
Q
What is a pure market economy?
A
When all major economic decisions are made by individuals and private firms
7
Q
What is a centrally planned economy?
A
Purely run by the government
8
Q
What are the characteristics of a market economy?
A
product market
ownership of property
consumer sovereignty
freedom of enterprise
market system
9
Q
Why do goverments intervene?
A
