Lesson 1 Flashcards

1
Q

What is the role of graphs in economics?

A

Graphs show the relationship between two variables, usually referred to as independent and dependent variables.

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2
Q

What does “ceteris paribus” mean, as used in economics?

A

Assumption that any influences other than the variable(s) being considered are held constant. Literally, “all else being equal.”

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3
Q

What is the meaning of a graphed plot with a negative slope?

A

The two variables move in opposite directions (i.e., the dependent variable decreases as the independent variable increases).

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4
Q

Define “economics”?

A

Study of the allocation of scarce economic resources among alternative uses

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5
Q

Identify the intercept on a graph.

A

The point at which the plotted line intersects the y-axis (i.e., at the zero point on the x-axis)

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6
Q

What is international economics?

A

Economic activities that occur between nations and outcomes that result from those activities

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7
Q

Identify the x-axis and y-axis of a graph.

A

The x-axis is the horizontal line; the y-axis is the vertical line. (To help remember, the letter “Y” has a vertical element to it.)

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8
Q

Identify the major divisions of the field of economics.

A

Microeconomics
Macroeconomics
International economics

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9
Q

What’s macroeconomics?

A

The economic activities and outcomes of a group of entities taken together, typically of an entire nation or major sectors of a national economy

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10
Q

What is the meaning of a graphed plot with a positive slope?

A

The two variables move in the same direction (i.e., the dependent variable increases as the independent variable increases).

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11
Q

What is a time-series graph?

A

A graph showing changes in a variable over time. Commonly, time is considered the independent variable and plotted on the horizontal x-axis.

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12
Q

What are the characteristics of a command economic system?

A

Government largely determines the production, distribution and consumption of goods and services (e.g., communism and socialism).

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13
Q

What are the characteristics of a market (free-enterprise) economic system?

A

Distinct entities determine production, distribution, and consumption in an open market (e.g., capitalism).

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14
Q

What is “microeconomics”?

A

The economic activities of distinct decision-making entities, including individuals, households, and business firms

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15
Q

What are the major types (extremes) of economic systems?

A

Command economic system

Market (free-enterprise) economic system

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