Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > Test1 > Flashcards

Test1 Flashcards

1
Q

What is economics

A

A social science that is concerned with the way that society chooses to use it’d scarce resources assuming that these resources have alternate uses for both present and future consumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What did Adam Smith believe

A

Is the people who will own and control a majority of the nations resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What kind of economist is Adam Smith?

A

A classical economist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the invisible hand theory

A

ADAM SMITH—->WEALTH OF NATIONS

NO government role in the economy invisible hand will guide the economy in the way it should go

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What did Keynes believe?

A

Government should own and control resources
GOVERNMENT PROVIDES BASIC NEEDS
Won’t last for a long time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Milton Friedman

A

Classical economist made Adam Smith’s ideas more modern

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Macroeconomics

A

Positive problem solver—->gather all facts and get solution based ONLY on these facts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Microeconomics

A

Normative problem solver—-> gather all the facts and get solution beyond them like considering feelings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a theory

A

An expressed relationship regarding variables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the three parts to a theory?

A 
DEFINITION 
GIVEN(conditions under which the theory is true)
HYPOTHESIS(best guess as to the relationship that exist among variables)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the degree/amount of collectivism?

The amount of control the government has over its resources

A 
Communist= leaders will keep the nation communist b/c they are living so well
Socialist= leaders will have a lot of control over resources to provide for common good
Capitalist= leaders have a little bit of collectivism for safety
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How will the resources be used?

Producing capital products and/or consumer products

A

Communist= use a majority of their capital to produce weapons
Socialist= to produce consumer products
Mixed(UNITED STATES)= produce both capital and consumer products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Who will receive the product?

Who will buy/consume it

A 
Communist= those in power
Socialist= everyone
Capitalist= those who can afford it
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the purpose of capital product?

A

To produce something else

Ex: money, tools, pencils

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the 4 factors of production?

A

LAND
CAPITAL
LABOR
ENTREPRENEURSHIP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is land

A

All property resources that ARE NOT MANMADE

17
Q

What is capital

A

MANMADE property resources

18
Q

What is labor

A

Physical work

19
Q

What is entrepreneurship?

A

Willingness to take a risk. Creativity and imagination.

20
Q

What nations have all 4 factors of production?

A

ALL NATIONS HAVE THE FACTORS OF PRODUCTION

21
Q

What is meant by the 4 facilitating factors?

A

A nation will be able to produce more quantitatively and qualitatively

22
Q

What are the 4 facilitating factors?

Ps. You can only find all 4 in a CAPITALIST NATION

A
  1. Emphasis on Advanced technology
  2. Specialization
  3. STABLE medium of exchange
  4. A culture that is willing to accept change
23
Q

Emphasis on advanced technology explanation

A

Technology is highly valued because it makes our lives easier and we get more from what we already have

24
Q

What is specialization?

A

Nation will use their best advantage as in…
ABSOLUTE advantage- better at producing a product than any other nation
COMPARATIVE advantage- good at producing product but there are other nations just as good

25
Q

What is a stable medium of exchange?

A

People have faith in their currency and are willing to work for the money

26
Q

Why would a culture be willing to accept change?

A

If they see the need to improve production. Like computers and women in the work place

27
Q

What are the 4 principles of capitalism?

A
  1. Voluntary Investment
  2. Profit Motive
  3. Private Property
  4. Limited government intervention
28
Q

What is voluntary investment?

A

The people of the nation who provide the business with the money that they need to operate. Therefore when the company is deciding what products to produce, they will do so to please the people

29
Q

What is profit motive?

A

The invisible hand. We buy things simply because we want or need them

30
Q

What is private property?

A

Talents and abilities are protected by law; they are our private property

31
Q

What is product?

A 
Anything that is useful to someone
GOODS- tangible 
SERVICES- intangible 
FREE- people are not willing to pay
ECONOMIC- scarce and willing to pay
32
Q

What does utility mean?

A

useful
FORM- offered in a form in which it is useful
TIME- offered at a time in which it it useful
PLACE- offered at a place in which it is useful
SERVICES- offering a service appropriate to people’s needs

33
Q

What is wealth?

A

Must be transferable, must have utility and must be tangible

34
Q

What are the 3 types of wealth?

A 
Land ( must be transferable) 
Capital goods ( used to produce something else )
Consumer goods ( must be tangible )
35
Q

What is money

A

A medium of exchange with a measure of value and stores value over time

36
Q

What is value

A

Has a dramatic affect on decision making.
Intrinsic- personal value
Extrinsic- price tag value

37
Q

What is liquidation?

A

When you convert wealth into money

38
Q

What are production possibilities?

A

All possible ways that a nation can use its resources

39
Q

What is opportunity cost?

A

Intrinsic value of an alternative that you give up in order to choose another opportunity
THE GOOD THING YOU GIVE UP

Economics (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions