Week 1 Flashcards

1
Q

What is Economics?

A

Economics is the social science studying the production, distribution and consumption of goods and services.

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2
Q

What does Economics focus on?

A

It focuses on the behavior and interactions of economic agents and how economies work.

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3
Q

What are the different branches or types of Economics?

A
Different branches of economics include:
Types: 
1) Microeconomics 
2) Macroeconomics 
3) Agricultural economics
4) Development economics
5) Political economics
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4
Q

What is a consumer?

A
  1. Consumers are the basic economic entity of an economy.
  2. All the consumers have limited income, by which the consume goods & services directly and indirectly to maximize utility.
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5
Q

What is producer?

A

A producer is one who makes and supplies goods or services.

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6
Q

what are the different types of producers?

A
  1. Agricultural Producers
  2. Industrial Producers
  3. Service Producers
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7
Q

What is the role of the government in economics?

A

The government’s purpose in economy is:

  1. To provide facilities
  2. To promote economic stability and growth
  3. it attempts to regulate and control the economy by numerous laws regarding economic activity.
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8
Q

when does scarcity occur?

A
  1. Scarcity occurs where it’s impossible to meet all unlimited the desires and needs of the people with limited resources i.e; goods and services.
  2. Society must find a balance between sacrificing one resource, which will result in getting other.
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9
Q

what does efficiency denote?

A

Efficiency denotes the most effective use of a society’s resources in satisfying people wants and needs

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10
Q

What is the twin theme of economics?

A

The twin theme of economics states that:

  1. Goods are ‘scarce’ and our Society must use it ‘efficiently’.
  2. Scarcity means insufficient resources like land, labor, and capital.
  3. Efficiency means maximum use of resources.
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11
Q

Whats the difference between microeconomics and macroeconomics?

A

Microeconomics is the study of economics at an individual, group or company level.

Whereas Macroeconomics is the study of a national economy as a whole.
e.g Economy of Pakistan

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12
Q

Why does an economy exist?

A

An economy exists because of two basic facts:

1) Human wants for goods and services are unlimited
2) productive resources used to produce goods and services are scarce

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13
Q

Why does economics state that all wants cannot be satisfied?

A

According to economics, wants being unlimited and our resources being limited, we cannot satisfy ALL our wants.

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14
Q

What are the fundamental questions of economics?

A

the fundamental questions in economics are:

1) What to produce?
2) How to produce?
3) And for Whom?

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15
Q

What is ‘rational behavior’ in Economics?

A

In economics, rational behavior is a decision-making process based on making choices which provide optimal level of benefit or utility to the individual.
In other words, it is rational to try to get the best thing.

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16
Q

What are the four types of economic systems?

A

1) Market economy
2) Command Economy
3) Traditional Economy
4) Mixed Economy

17
Q

What is Market Economy?

A

Market Economy is

an economic system in which individuals own and operate the factors of production.

18
Q

What is Command Economy?

A

Command Economy is an economic system in which the government owns and operates the factors of production.

19
Q

What is Traditional Economy?

A

Traditional Economy is an economic system that is based upon customs and traditions. It is based upon agriculture and hunting.

20
Q

What is Mixed Economy?

A

Mixed Economy is an economic system that has features of both market an command economics.

21
Q

What does slope measure?

A

Slope measures the relationship between two variables.