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13 Cards in this Set
- Front
- Back
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What are the core questions in economics?
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What to produce?
How to produce it? For whom to produce it? |
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What are the major factors of production?
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Resource inputs used to produce goods and services
Four Types: Land Labor Capital Entrepreneurship |
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Define and Explain Opportunity cost?
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The next most desired goods and services foregone to obtain something else
"Giving up one asset or resource in order to produce another" |
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Define an economy's production possibilities.
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The alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology
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Illustrate the concept of Opp. Cost using a production possibilities diagram.
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What are the implications of Scarcity?
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Lack of enough resources to satisfy all desired uses of those resources
"limit to economic output" |
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Why do Opp cost increase with greater production.
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Difficulty shift resources and different mixes/ intensities of resources.
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Define inefficiency and efficiency.
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Efficiency: Maximum output of a good from the resources used in production
Inefficiency: a sub optimal combination of output <100% |
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Illustrate efficiency and inefficiency.
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Define Economic Growth and economic decline.
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Econ Growth: Is an increase in production possibilities due to increases in resources.
Econ decline: Is an decrease in production possibilities due to disease, natural disasters, war. |
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Illustrate economic growth/
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What are the major topics and perspectives within microeconomics?
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The study of individual behavior in the economy
-"Markets" Supply and Demand -Resources -Individual pricing |
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What are the major topics and perspectives withing macroeconomics?
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The study of aggregate economic behavior, of the economy as a whole.
- National Production - GDP -Unemployment - National Income |
