Q1: basics of graphs and economics Flashcards
Prepare you for quiz 1!
Japanese Currency
Yen
Korean Currency
Won
Chinese Currency
Yuan
Describe a Product Graph
P/Q, S/D (P=price, Q=quantity) (S=supply of product, Quantity of product sold)
Describe a Labor Graph
W/Q, S/D (W=wage rate, Q=quantity) (S=supply of workers, D=demand for workers from company)
Describe a Foreign Exchange Graph
V/Q, S/D (V=value of currency, Q=quantity of currency) (S=domestic supply of money/citizens leaving, D=foreign demand for the money/foreigners visiting)
What are Goods
physical objects someone purchases (ex: food, clothes, or video games)
What are Services
actions or activities that one person performs for another (Ex: medical care or haircuts)
What is scarcity
limited amounts of goods and services are available to meet unlimited wants and needs
What is Economics
the study of how people seek to satisfy their needs and wants by making choices on different levels (individual, groups, governments)
What are Entrepreneurs
people who decide how to combine resources to create new goods and services
What is Land in economics
all natural resources used to produce goods and services
What is Labor in economics
the effort people devote to tasks for which they are paid
What is capital (physical and human)
any human-made resource that is used to produce other goods/services.
- physical capital is human made objects used to create other goods and services (ex: a building housing a company that makes other products)
- human capital is the knowledge and skills a worker gains through education and experience (ex: increase your human capital to advance physical capital)
Three basic economic questions
- What goods and services should be produced?
- How should these goods and services be produced?
- Who consumes these goods and services?
The answers define a country’s economic system.