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Semester Vocab
N/A
25
Economics
11th Grade
12/07/2008

Additional Economics Flashcards

 


 

Cards

Term
resources
Definition
anything that can be used to produce a product to satisfy human desires
Term
land
Definition
any natural resources (water, trees,minerals, soil rivers)
Term
labor
Definition
the human mental and physical abilities
Term
entrepreneurial ability
Definition
anyone that is willing and able to take a risk and give money to the production of a product
Term
scarcity
Definition
anything that is in limited supply and has a price
Term
capital
Definition
man made resources which indirectly satisfy human needs
Term
economizing problem
Definition
humans have unlimited desires, but there are only limited resources
Term
opportunity cost
Definition
something that you give up to have something else
Term
rationing system
Definition
a way to divide up resources in an economy
Term
3 fundamental questions
Definition
what and how much of something to be produced?
who to produce for?
how to produce?
Term
production possibility curve
Definition
a way to show how much a firm can produce when all of its resources are being used fully
Term
disadvatages of a free market economy
Definition
-to many demerit goods
- too little merit goods
-firms can become monopolies
- resources can be used to quickly causing environmental damage
Term
disadvantages of a planned economy
Definition
- economies are to complicated to be planned
- governments take away rights and liberties of the people
- there is no work incentive
- there are no prices on goods
Term
positive economics
Definition
a statement which can be proved correct or incorrect

Asian markets raised 3% yesterday.
Term
normative economics
Definition
anything that is an opinion

"African oil prices had an atrocious drop after terrorist attacks."
Term
difference between macro and microeconomics
Definition
macroeconomics is the encompassing of entire economies and how they grow and change through inflation and other things while microeconomics just focuses on individuals and their growth and change through income
Term
economic growth vs. economic development
Definition
economic growth is the national income per capita while economic development deals with economic growth as well as the welfare aspect of an economy
Term
circular flow chart
Definition
Resource Market
Payment Profit, Rent,Interest,Wages
Resources Land,Labor,Capital, Entr.

Firm Households

Revenue Expenditures
Products Product Market Goods/Services
Term
demand
Definition
quantity of a good/service a consumer is willing and able to purchase at a given time
Term
law of demand
Definition
as price falls, the demand for a product will increase (movement along a demand curve)
Term
determinants of demand (demand shifters)
Definition
I income of consumers
N number of consumers
E expectations
P price of related goods
T tastes
Term
supply
Definition
the quantity of a product a firm is willing and able to produce at a given time
Term
law of supply
Definition
as price increases the quantity supplied will increase (movement along a supply curve)
Term
determinants of supply
Definition
P price of substitute goods
R resource prices
E expectations
T taxes and subsidies
N number of suppliers
T technology
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