Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Econ Unit1
Econ Chapter 1
| Question | Answer |
|---|---|
| Utility | Pleasure, happiness, or satistaction |
| Marginal analysis | comparing marginal benefits to marginal losses, using marginal to mean 'Extra" |
| Scarcity | limited resources,yet humans have unlimited wants |
| other things equal assumption (latin) | ceteris paribus |
| abstractions | simplification, omit irrelevancies |
| Economic Goals | GEEP FIBS - economicGrowth, full Employment, economic Efficiency, Price-leve Stability, economic Freedom, equitable distribultion of Income, Balance of trade, economic Secuity |
| Difference between micro and macro | Micro- aggregates or small units. Macro- total |
| Positive economics | How things ARE |
| Normative economics | How things ought to be |
| fallacy of composition | the fallacy that something true for a part is true for a whole |
| Is correlation and causation related | no |
| Factors of production | CELL - Capital, Entrepreneur, Labor, Land |
| full employment | All avaliable resources used |
| full production | all resources used BEST |
| Production efficiency | Mixing your production of goods and services in the least costly way, i.e. on the curve of a PPC curve |
| allocative efficiency | Where on the curve society wants |
| Assumptions for a PPC | *Resources/factors of production are fixed *technology is fixed * economic efficiency is possible * only produce 2 products |
| What does PPC stand for? | Production possibilities curve |
| law of increasing opportunity costs | more of a product that is produced, the greater its opportunity cost |
| opportunity cost | the next best thing |
| optimal efficiency | Marginal Benefit = marginal cost |
| market system | capitalism, demand and efficiency determine prices |
| command system | government determines prices |
| Circular flow diagram | draw and check with one in book |
| resource market | where resources and services of resource are bought and sold |
| product market | where goods and services produced by businesses are bought and sold |
| Freedom of enterprise | people can use resources to make money however they want |
| freedom of choice | owners can dispose of property how they want to |
| self interest | motivating force of all economic units |
| what does competition require? | independently acting seller and buyers operating in a particular product or resource market AND freedom of buyers/sellers to elave market |
| Division of labor/specialization advantages | makes use of differences in ability, fosters learning by doing, saves time |
| Four Fundamental Questions | 1. What goods and services will be produced 2. how will the g/s be produced 3. who will get the g/s 4. how will the system accommodate change? |
| economic costs | payments that must be made to secure and retain the needed amounts of those resources |
| normal profit | payment for an entrepreneurs contributions |
| economic profit | I think this is what you make when you subtract all costs from your profit |
| consumer sovereignty | consumers in control, i.e. market economy |
| dollar votes | whats making money determines what is made |
| creative destruction | getting rid of a market for one product to make room for a newer one |
| 3 merits of market system | efficiency, incentives, freedom (FIE) |
Created by:
namaste
Popular Business sets