Introduction to economics Flashcards
Why do we need an economy?
an economy is important because it helps us meet our needs and wants. It’s like a big system where people produce and exchange goods and services. It helps create jobs, provide income, and improve our standard of living.
What are the three key questions in any economy?
What to produce (are society’s needs met?)
How do we produce it?
Who gets it ( how to distribute it)?
What are the three most common ways to label an economy?
free market, mixed and command
What is the difference between right-wing and left-wing economies?
While the right-wing approach promotes individual liberty and economic efficiency, critics argue that it can lead to income inequality and social disparities. Conversely, left-wing policies aim to address these inequalities but may face criticism for potentially stifling economic growth and discouraging innovation and in the middle is a mixed economy
What are the three types of resources?
The three main resources are land labor and capital.
What causes scarcity?
Scarcity is caused by not having enough resources to meet the needs and wants of people. It can be caused by an increase in demand or a decrease in supply are potential scarcity causes.
What is the difference between public and private property, and why do people support these ideas?
When the government owns a property it is public property and the properties that are private are owned by private individuals
Why is it important for you to have an understanding of economics?
It’s important to understand economics so you can form your own decisions about the economy and the decisions the government makes.
