Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
33 Cards in this Set
- Front
- Back
|
economics
|
the branch of knowledge concerned with the production, consumtion and transfer of wealth
|
|
|
scarcity
|
a small, or inadequate amount
|
|
|
who is affected by scarcity
|
everyone
|
|
|
why does scarcity exist?
|
because there is always the need for something
|
|
|
difference between a good and a service
|
good:is a tangable item, someting you sell
service: is a good deed something you cant hold in your hands |
|
|
difference between shortage and scaricty
|
scarcity is rare you dont get much
shortage is just missing a couple dollars, dosnt happen very much |
|
|
four factors of production
|
land
labor capital human capital |
|
|
opproutunity cost
|
the loss of potential gain from other alternatives when one alternative is chosen
|
|
|
what are the three economic questions?
|
what is to be produced?
how are the goods to be produced? from whom are they produced? |
|
|
what is a traditional economy system?
|
a system where traditions, customs, and belifs shape the goods and products society creates
|
|
|
what is a market economy?
|
an economy that relies chiefly on market forces to allocate goods and recourses and to determine prices.
|
|
|
centrally planned economy
|
planned economy is an economic systerm in which state directs economy
|
|
|
mixed economy
|
an economic systerm combining private and public enterprise
|
|
|
what type of system is the USA?
|
mixed
|
|
|
who is adam smith?
|
pioneer of the economy
|
|
|
competition
|
it is the rivary among sellers trying to achieve such goals as increasing profits
|
|
|
who is competition good for consumers?
|
because it pushes you to do better
|
|
|
what are the advantages for a free market society?
|
*individual innovation
*hard work *always rewarded |
|
|
problems with a centrally planned economy?
|
*standard of life does not grown
*cant increase that much *stealing from system becomes best option |
|
|
why are modern societies mixed?
|
they are driven by their cultural practices they dont really like to change someone has to come out on top.
|
|
|
what is GDP?
|
the total value of good produced and services provided in a country during the year.
|
|
|
what is a business cycle?
|
a cycle or series of economic exansion and contraction
|
|
|
what is technology, and why is it important to an economy?
|
because it accounts for more than 50% of long term economy growth in the USA
|
|
|
what is a public good?
|
a service provided without profit to all members of society either by gov or by private individual
|
|
|
what is a free rider?
|
free riders consume more than their paying
|
|
|
what is a market failure?
|
a concept with economic theroy where in the allocation of goods and services by a free market is not efficient
|
|
|
what is an externaility?
|
a cost or benifit which resultys from an activity or transaction, which affects otherwise not involved
|
|
|
example of positive externaility?
|
education
|
|
|
example of negative externality?
|
road congestion
|
|
|
what is the welfare system?
|
state asumes primary responsibility for the welfore of its citizens as in matters of health care, education, employment, social security
|
|
|
safety nets in our society?
|
unemployment benifits, social security, medicaid
|
|
|
what is progressive tax?
|
any tax which the rate increases as the amount subject to tax increases.
|
|
|
what is a flat tax?
|
a tax system in which a constant
|
