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Honors Economy > Unit 1A > Flashcards

Unit 1A Flashcards

1
Q

a social science studying the allocation of scarce resources and goods

A

economics

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2
Q

in short supply and wanted

A

scarce

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3
Q

exists when unlimited wants exceed limited productive resources

A

scarcity

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4
Q

the more a consumer is willing and able to pay for the product, the more he is likely to get it. If resources are really scarce, this will go up. Most utilized method in our economy and the free market

A

price

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5
Q

what most people vote for decides who gets the resources. this can take advantage of minorities

A

majority rules

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6
Q

everybody gets some
ex. a command economy and kindergarten

A

sharing

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7
Q

whoever wins the contest gets the resource

A

contest

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8
Q

whoever wins the drawing gets the stuff, total chance

A

lottery

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9
Q

whoever is strong enough, takes the stuff they want
ex. a society without police

A

force

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10
Q

whoever is in charge decides how the resources are distributed
ex. absolute monarch or dictator

A

authority

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11
Q

you show up first and you get it

A

first come first serve

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12
Q

those who have a certain trait get the resource
ex. a teacher giving all the good grades to blue-eyed students

A

personal characteristics

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13
Q

the inputs (land/natural resources, labor, capital, and entrepreneurship) used to produce outputs

A

productive resources or factors of production

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14
Q

society’s limited natural resources
ex. vegetation, animal life, climate, and time

A

land

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15
Q

include labor and human capital

A

human resources

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16
Q

HUMAN workers employed by entrepreneurs to apply their skills, efforts, and abilities to produce

A

labor

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17
Q

the knowledge and talents of laborers
ex. a business pays for an employee’s health insurance, tuition to go back to school, training, or time off
ex. an individual attends college to acquire skills that will help him in the future

A

human capital

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18
Q

includes the man-made tools, equipment, factories or other manufactured goods used to produce other goods or services

A

physical capital

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19
Q

risk-takers who combine the land, labor, and capital into new products. Their main reason is to earn a profit. they innovate, create jobs, pay wages, and improve society

A

entrepreneurs

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20
Q

using resources that could postpone immediate benefit for the purpose of gaining greater benefit over time

A

investment

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21
Q

the level of wealth, comfort, material goods, and necessities available to an individual

A

standard of living

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22
Q

is the most important thing for economic growth and standard of living for individuals, businesses, and governments

A

increasing human capital

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23
Q

investment in - is also essential to increasing economic growth and productivity

A

physical capital and technology

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24
Q

a person is called - if they are actively looking for a job

A

unemployed

25
Q

output / input

A

productivity

26
Q

standard of living increases when individuals, businesses, and governments -, concentrating on a single area of expertise

A

specialize

27
Q

focus in a specific area allows more efficient production due to the devotion of resources such as - entirely to that area

A

physical and human capital

28
Q

companies are able to make products - and individuals are able to perform occupations with more competence when they utilize specialization

A

better, cheaper, and faster

29
Q

manufacturing process often assigned to different people in the production of one item

A

division of labor

30
Q

manufacturing process in which parts are added progressively through different workstations until the final assembly is produced

A

assembly line

31
Q

choosing to trade out goods or services for something else of value

A

voluntary trade

32
Q

forces the use of voluntary exchange because one is not able to produce everything wanted or needed because of his specific task

A

specialization

33
Q

voluntary exchange is beneficial to the parties that use it as long as it is - (both parties are honest in what they are trading)

A

non-fraudulent

34
Q

the next best alternative: the main thing you give up when choosing something else

A

opportunity cost

35
Q

forces individuals, businesses, and governments to experience an opportunity cost when they make a decision

A

scarcity

36
Q

the cost of getting one more item
ex. taco palace tacos are $1

A

marginal cost

37
Q

the benefit associated with procuring one more item

A

marginal benefit

38
Q

when the marginal benefits of an action equal or exceed the marginal cost

A

rational decision

39
Q

when the marginal costs outweigh the benefits

A

irrational decision

40
Q

the sum of all costs of a firm when producing an output. includes both variable and fixed cost
ex. wages, rent, utilities, machinery costs, etc.

A

total cost

41
Q

total cost of production divided by quantity produced
ex. apple spends $5000 making 10 phones, making each phone $500 to produce

A

average total costs

42
Q

costs not dependent on the quantity of a good that is produced
ex. apple has to pay property taxes, rent, insurance, etc.

A

fixed costs

43
Q

a corporate expense that changes in proportion to the amount a company sells or produces
ex. apple has to pay for raw materials, delivery expenses, and worker wages

A

variable cost

44
Q

due to -, the cost of production of an additional item (marginal cost) will change as quantity produced changes
ex. apple may have to charge more to make an additional phone because it will need to go in an additional shipment or need new machinery to make

A

variable costs

45
Q

the total amount of income generated by sales

A

revenue

46
Q

the amount of income generated by one additional item. it may decrease if a company over produces and has to lower its prices

A

marginal revenue

47
Q

total revenue minus total cost

A

profit

48
Q

profit is maximized when a company makes wise decisions regarding their -

A

marginal revenue and marginal costs

49
Q

Homer should hire 3 employees because after 3, the - to hire a worker is more than the - the worker creates. It’s the rational decision, because 3 workers maximize his profit

A

marginal cost; marginal revenue

50
Q

in order to grow, businesses and governments must make wise decisions about -

A

allocation of resources

51
Q

a - depicts how much of a particular product can be produced given the limited number of resources at a company’s disposal

A

production possibilities curve

52
Q

the line on the graph represents the full potential (aka -) when the economy employs all of these productive resources

A

the frontier

53
Q

identifying the - allows an economy to examine how it can best put its limited resources into production

A

possible alternatives

54
Q

an economy pays a high cost if any of its resources are -. it cannot produce on its frontier and it will fail to reach its full production potential. the economy’s standard of living would be lower

A

idle

55
Q

points inside the PPC represent an - use of resources
ex. the economy may be characterized by high unemployment, workers spending too long on breaks

A

inefficient

56
Q

points outside the PPC are - because resources are not currently available

A

impossible

57
Q

economic growth is made possible by -, a larger labor force, or an increase in education causes a new frontier for the economy. the curve shifts outward

A

more resources

58
Q

an - means more production and a higher standard of living for an economy or more profit for a company

A

outward shift

Honors Economy (2 decks)

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