M2 Flashcards

1
Q

what problem cause by unlimited and unsatisfied needs and wants of people

A

limited resource

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2
Q

this has something to do with land

A

limited in physical quantity

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3
Q

resources are limited in 2 essential way

A

limited in physical quantity
limited in use

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4
Q

this limitation pertains to labor, machinery, which can be used for he purpose at any one time

A

limited in use

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5
Q

2 fundamental concepts in economics

A

choice and opportunity cost

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6
Q

pertains to sacrifice only the best among the opportunities you could have taken instead

A

opportunity cost

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7
Q

any choice you make is the value we place on the best opportunity that will have to be given up if that action is take

A

opportunity costs

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8
Q

opportunity cost is ________ because it depends on the perspective of the taking the action

A

subjective

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9
Q

means the highest-valued alternative derived

A

opportunity cost

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10
Q

the decision made after considering trade offs. It’s the selection of one option from a set of alternatives

A

choice

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11
Q

a problem which everyone is affected, decisions can have external effects on other people not involved in the transaction

A

externalities

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12
Q

where does externality may arise

A

between producers, between consumers

between consumer and producers

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13
Q

a cost or benefit of an economic activity experienced by an unrelated third party

A

externalities

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14
Q

externalities can be ____ when the action imposes costs on another

A

negative

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15
Q

externalities can be ______ when the action of one party benefits on another

A

positive

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16
Q

2 types of externalities

A

negative
positive

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17
Q

what part of negative where air pollution, water pollution, and noise pollution arises

A

negative production

18
Q

what part of negative where passive smoking and traffic congestion arises

A

negative consumption

19
Q

what part of positive where infrastructure and research are develop

A

positive production

20
Q

what part of positive where individual education and vaccination are part

A

positive consumption

21
Q

externalities usually need some kind of government __________

A

intervention

22
Q

question of economic problems in microeconomics

A
  • how to deal w/ externalities?
  • who should own national utilities
  • how to put value on environment
  • how to reduce inequality
  • how to deal with monopoly power
23
Q

what adam smith’s book was concerned with monopoly

A

“an inquiry into the nature and causes of the wealth of nations”

24
Q

other sellers are unable to enter the market

A

monopoly

25
Q

a _______ can change the price and quality of the market

A

monopoly

26
Q

a problem because of normative opinions such as unfair distribution of resources

A

inequality/poverty

27
Q

____________ can cause swings in economic frontiers

A

volatile market

27
Q

what problem cause by diminishing marginal utility of wealth

A

inequality/poverty

28
Q

paiba ibang prices

A

volatile prices

29
Q

any form of debt for which payments has not been made on time

A

delinquent loan/ irrational behavior

30
Q

what are the microeconomic problems

A

-monopoly
-inequality/poverty
-volatile prices
-irrational behavior/ delinquency of loans

31
Q

a problem cause by business cycle swings

A

mass unemployment

32
Q

a decrease in the demand for products or goods during recession may lead to __________

A

lay off workers

33
Q

________ can also be caused by rapid changes in labor markets

A

unemployment

34
Q

a period of negative economic growth - a decline in the size of economy

A

recession

35
Q

rapidly rising prices

A

inflation

36
Q

________ can cause not just economic turmoil but political turmoil as people lose confidence in the economic situation

A

hyperinflation

37
Q

an economy importing more goods and services than it is exporting

A

balance of payment/ current account deficit

38
Q

large deficit has to be financed by borrowing, and this situation usually lead to a _________

A

rapid devaluation

39
Q

this increases the price of imports, reduces living standards and causes inflation

A

devaluation

40
Q

the risk. associated with unexpected movements in the exchange rate.

A

exchange rate votality

41
Q

a rapid increase to the price of imports

A

exchange rate volatility