Hass Exam Economics & Geography Flashcards
Scarcity
Having limited recourses to achieve unlimited needs and wants
Market
The organised exchange of goods, services or recourses between buyers and sellers.
Distribution of Wealth
The way in which the wealth and income of a nation are divided among its population, or the way in which the wealth and income of the world are divided among nations.
Infant Mortality
How much babies die before their 1st birthday.
Life Expectancy
The average period a person may expect to live.
Literacy Rate
The percentage of a population of a given age that can read or write.
Financial Liabilities
A liability is something a person or company owes, usually a sum of money.
Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
Tax
An amount of money that a government requires people to pay according to their income. the value of their property, etc.
Economic Growth
An increase in the amount of goods and services produced per person within a specific period of time.
Economic Problem
the problem of choice in the use of scarce resources for satisfaction of unlimited human wants.
Opportunity Cost
Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.
Example of Opportunity Cost
A student spends 3 hours and $20 at the movies the night before the exam.
Supply
The amount of a specific good or service that is available to consumers.
Demand
The amount of a product consumers are willing to buy at a given price.
4 types of income
Earned or Active Income
Investment Income
Passive Income
Inherited Income
Lorenz Curve
A graphical representation of the distribution of income or wealth within a population.
GDP
The monetary value of final goods and services, that is those that are bought by the final year.
Target GDP growth rate
2 - 3% steadily at 2.25%
An unemployed person
A person who is actively searching for employment is unable to find work. Unemployment is considered to be a key measure of the health of the economy.
Target Unemployment Rate
4.5%
Inflation
The rate of increase in prices over a given period of time
Target Inflation Rate
Between 2 - 3%
Standard Of Living
The level of income, comforts and services available, are generally applied to society or location, rather than to an individual.
Difference Between Material and Non-Material Standards of Living
Material Standards of living refer to our access to physical goods and services.
Non-Material standards of living are factors that affect a person’s quality of life, irresponsible of income.
Measure used for Standard Of Living
The standard of living is measured by things that are easily quantified. Such as income, employment cost of goods and services, and poverty. GDP is a generally accepted measure of the standard of living.
Economic Growth positive effects on Standard of Living
When economic growth rises, households have a higher level of purchasing power, which allows them to purchase more goods and services.
Economic Growth negative effects on standards of living
Higher output of economic growth can also lead to increased pollution and congestion which reduces living standards.
