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Basic Microeconomics > Introduction to Economics > Flashcards

Introduction to Economics Flashcards

1
Q

A system for deciding how to manage scarce resources.

A

Economy

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2
Q

How you effectively allocate scarce resources for your unlimited wants and needs.

A

Economic Way of Thinking

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3
Q

The limitedness of economic resources.

A

Scarcity

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4
Q

A social science that studies how societies allocate their limited resources to satisfy their needs and wants.

A

Economics

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5
Q

A branch of economics that deals with analyzing the smallest unit in the economy (household)

A

Microeconomics

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6
Q

What is the economic problem?

A

Scarcity, having not enough resources

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7
Q

It is having not enough resources to satisfy everyone’s wants and needs.

A

The Economic Problem

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8
Q

What are wants?

A

Desires

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9
Q

The essentials or necessities for survival.

A

Needs

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10
Q

The value of the forgone opportunity to obtain an alternative.

A

Opportunity Cost

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11
Q

There is no free lunch.

A

Nothing is free in this world.

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12
Q

What are the Four Resources in Microeconomics?

A

Labor
Managerial Skills
Capital
Land

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13
Q

It pertains to manpower or human effort.

A

Labor

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14
Q

It refers to the capacity to make managerial, optimal, and informed decisions.

A

Managerial Talent or Entrepreneurship

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15
Q

It pertains to tools and machinery that depreciate in value.

A

Capital

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16
Q

It is the space where operations happen.

A

Land

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17
Q

It is when people make choices to maximize their own happiness and satisfaction, even though they may not always make perfect decisions.

A

Purposeful Behavior

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18
Q

What is Purposeful Behavior?

A

It is when people make choices to make themselves happy and satisfied, even if they don’t always make the best choices.

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19
Q

How do we weigh costs and benefits?

A

Become purposeful and rational rather than random or chaotic.

20
Q

It means having a little more or a little less of something.

21
Q

It means extra or additional.

A

Marginal Values

22
Q

It refers to the value of the perceived measure or utility. Your gains.

A

Marginal Benefits

23
Q

It is the added expense over the original cost.

A

Marginal Cost

24
Q

The comparison of two marginal values (Marginal Benefit and Marginal Cost) for decision-making.

A

Marginal Analysis

25
When do we upsize a drink?
When Marginal Benefit is greater than Marginal Cost.
26
When shouldn't we upsize a drink?
When Marginal Cost is greater than Marginal Benefit.
27
A financial constraint or limitation.
Budget
28
A graphical representation that shows various combinations of two products buyers can purchase given a specific income.
Budget Line
29
It shows the attainable and unattainable combinations of two products buyers can purchase given a specific income.
Budget Line
30
In the budget line, it shows the attainable, beneficial, and possible combinations
Combinations within the curve
31
It shows the unattainable, inefficient, impossible combinations in the budget line.
Combinations outside the curve
32
It is an economic tool that measures possible alternative combinations of two products using the income of a buyer.
Budget Line
33
PPF
Production Possibilities Frontier
34
A graphical representation of the maximum amount of two different goods a company or country can produce.
PPF
35
Production Possibilities Frontier assumes:
Full Employment Fixed Resources Fixed Technology Two Goods
36
Declarative economic statements that are factual.
Positive Economics
37
Suggestive economics that provides standards that are theoretical.
Normative Economics
38
It is also known as Theoretical economics
Positive Economics
39
An economics that focuses on facts and cause-and-effect relationships.
Positive Economics
40
Scientific-based analysis good for policy and political analysis
Positive Economics
41
Economics that looks at the world as it is.
Positive Economics
42
Economics that shows what ought to be
Normative Economics
43
It is also known as Policy Action
Normative Economics
44
Economics that incorporates value judgment about what the economy should be like.
Normative Economics
45
It recommends particular policy actions to achieve a desirable goal.
Normative Economics
46
"It's a good idea for the government to spend more on infrastructure projects because it boosts GDP growth and enhances the country's infrastructure."
Normative Economics
47
"More spending on infrastructure projects led to higher GDP growth in the past five years."
Positive Economics

Basic Microeconomics (3 decks)

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