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Geography-e
na fool
31
Economics
7th Grade
05/02/2011

Additional Economics Flashcards

 


 

Cards

Term
What are the 3 basic economic questions?
Definition
What, How , and For Whom to produce
Term
Why do we ask these questions?
Definition
Because we have unlimited wants and limited resources. We have to trade off decisions we make.
Term
Define Scarcity
Definition
Not having enough resources, money or labor to have everything we want.
Term
How does a command economy answer the 3 basic questions?
Definition
The gov't makes the decisions
Term
How does a market economy answer the 3 basic questions?
Definition
The business and consumers make the decisions
Term
Define Opportunity Cost
Definition
The cost of your next best alternative
Term
Define Trade-off
Definition
The choice between the 2 markets
Term
What are the 4 factors of reproduction?
Definition
Resources, Capitol, Labor, and Ideas
Term
Where are the factors bought and sold?
Definition
In the Factors Market
Term
Do factors of production count in the calculation of GDP?
Definition
NO!!! We only count the finished goods
Term
What is GDP?
Definition
Gross Domestic Product; all the products and services created in a year.
Term
How is GDP calculated?
Definition
Products+Services= Amount of GDP
Term
What are the 4 sectors of ecnomic decisions makers?
Definition
Business, Consumer, Foreign, and Government
Term
What do consumers sell in the Factors Market?
Definition
Labor & Ideas
Term
What do business sell in the products Market?
Definition
Goods & Sevices
Term
is the government a comsumer or business?
Definition
Both
Term
Which of the features of capitolism could we find in a Command Economy?
Definition
Market
Competition
Voluntary Exchange
Economic Freedom
Private Property
& Profit Motive
Term
Give an ex. of Competition
Definition
Black Friday
Term
Define Economics
Definition
The study of how we make decisions ina world were resources are limited
Term
How do our wants differ from our needs?
Definition
Needs are required for survival-Wants are things we would like to have
Term
What are the questions a society must ask because of scarcity?
Definition
A rational consumer would ask whether or not he or she can afford to buy am particular item or not
Term
Because scarcity exists, we must make choices. Explain why this is so.
Definition
We have to make choices because we do not have enough resources to produce all the things we would like to have
Term
define Economic Model
Definition
Simplified representations of the real world that are used to explain how the economy works
Term
On what do economists base their models?
Definition
Economic models are based on assumptions,or things we take for granted as true
Term
Why is the quality of an Economic Model no better than the assumptions on which the model is based?
Definition
Because your assumptions may be incorrect from the start
Term
Define Marginal Costs
Definition
The extra or additional cost on additional unit of output
Term
Define Cost Benefit Analysis
Definition
When you compare the marginal costs and the marginal benefits of a decision
Term
What must you take into account when making an economic decision?
Definition
All the costs and all the benefits of an action
Term
How do fixed costs differ from variable cost?
Definition
Fixed costs are expences that are the same no matter how many units of a good are produced-Variable cost change with the # of products are produced
Term
How do you calculate the total costs of a business?
Definition
Add the fixed cost to the variale cost(FC+VC)
Term
Waht is the purpose of a cost benefit analysis?
Definition
they tell us to choose an action when the benefits are greater than the cost
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