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BASIC MICROECONOMICS > M6 > Flashcards

M6 Flashcards

1
Q

involves converting inputs into outputs.

A

Production

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2
Q

are the resources used in the production process to create goods and services

A

Inputs

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3
Q

Input types

A
  • labor
  • capital
  • land
  • entrepreneurship
    -technology
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4
Q

Natural resources used in production, including minerals, forests, water, and agricultural land.

A

LAND

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5
Q

Human effort, including physical and mental work, used in the production process.

A

LABOR

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6
Q

Manufactured resources used in production, including machinery, tools, and buildings.

A

CAPITAL

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7
Q

The ability to organize and manage the other factors of production, and to take risks in the pursuit of profit.

A

ENTREPRENEURSHIP

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8
Q

The methods and processes used to transform inputs into outputs.

A

TECHNOLOGY

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9
Q

sometimes included as part of capital

A

TECHNOLOGY

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10
Q

are the final goods and services produced from the inputs. They are the results of the production process and are what firms sell to consumers.

A

OUTPUTS

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11
Q

Types of outputs

A
  • GOODS
  • SEVICES
  • BYPRODUCTS
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12
Q

Tangible products that can be consumed or used.

A

GOODS

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13
Q

Intangible products that involve a performance or activity.

A

SERVICES

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14
Q

Secondary products that are produced alongside the main output.

A

BYPRODUCTS

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15
Q

are resources used in the production of goods and services.

A

FACTORS OF PRODUCTION

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16
Q

Two key classifications of production

A
  • FIXED FACTOR
  • VARIABLE FACTOR
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17
Q

are inputs that do not change with the level of output.

A

FIXED FACTOR

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18
Q

They remain constant in the short run, regardless of the quantity of goods or services produced.

A

FIXED FACTOR

19
Q

are typically associated with the capacity of a firm and the infrastructure needed for production.

A

FIXED FACTOR

20
Q

Characteristics of fixed factor

A
  • CONSTANT IN THE LONG-RUN
  • LONG-TERM ADJUSTMENTS
21
Q

determine the maximum production capacity a firm can achieve in the short run.

A

FIXED FACTOR

22
Q

are inputs that change with the level of output.

A

VARIABLE FACTORS

23
Q

They can be adjusted in the short run to increase or decrease production levels.

A

VARIABLE FACTORS

24
Q

are more flexible and can be scaled up or down based on production needs.

A

VARIABLE FACTORS

25
Q

Characteristics of variable factor

A
  • ADJUSTABLE IN THE SHORT RUN
  • SHORT-TERM FLEXIBILITY
26
Q

provide firms with the ability to respond quickly to changes in demand or production requirements.

A

VARIABLE FACTORS

27
Q

allow firms to fine-tune production levels and optimize output within the constraints set by fixed factors.

A

VARIABLE FACTORS

28
Q
A
29
Q

Constant in the short run

A

FIXED FACTOR

30
Q

Long-term adjustment

A

FIXED FACTOR

31
Q

Determines production capacity

A

FIXED FACTOR

32
Q

Adjustable in the short run

A

VARIABLE FACTOR

33
Q

Provides short-term flexibility

A

VARIABLE FACTOR

34
Q

Sets production capacity limits in the short run

A

FIXED FACTOR

35
Q
A
36
Q

Adjusted long-term

A

FIXED FACTOR

37
Q
A
37
Q
A
38
Q

○ Labor
○ Raw materials
○ Energy

A

VARIABLE FACTOR

39
Q

provide the infrastructure and capacity,

A

FIXED FACTOR

40
Q

offer flexibility to adjust production levels based on current needs.

A

VARIABLE FACTORS

41
Q

also known as the Law of Diminishing Marginal Returns

A

LAW OF DIMINISHING RETURNS

42
Q

fundamental concept in economics that describes how, when increasing quantities of one input while keeping other inputs constant, the additional output (or marginal product) produced by each additional unit of input will eventually decline.

A

LAW OF DIMINISHING RETURNS

43
Q

says that after a certain point, adding more of one type of input (like workers) will result in progressively smaller increases in output.

A

LAW OF DIMINISHING RETURNS

BASIC MICROECONOMICS (7 decks)

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