Economics Flash Cards

Front 1

We study economics due to the ________ of resources.

Back 1

scarcity

Front 2

The best thing you must give up to get something is called _____.

Back 2

opportunity cost

Front 3

The saying, "There is no such thing as a free lunch," exemplifies the economic concept called______.

Back 3

opportunity cost

Front 4

The phenomenon in which something must be given up to acquire something else is called a(n).

Back 4

tradeoff

Front 5

The productive resources used to produce products are also known as.

Back 5

factors of production
or
inputs

Front 6

The work time and work effort that people devote to producing products is called.

Back 6

labor

Front 7

The human resource that organizes land, labor, and capital into an enterprise that produces a product is called.

Back 7

entrpreneurship

Front 8

Claims that attempt to describe the world as it is are called _____ statements.

Back 8

positive

Front 9

Claims that attempt to prescribe how the world should be are called _____ statements.

Back 9

normative

Front 10

An economy characterized by freely determined prices and the free exchange of goods and services in markets is known as a(n) _______ economy.

Back 10

market

Front 11

An economy in which the government determines prices and production is known as a(n) ______ economy.

Back 11

command
or
(centrally) planned

Front 12

In recent years, most command economies have been engaged in the complex process of converting from a command to a _______ system.

Back 12

market

Front 13

The country that has been the most successful, in an economic sense, at converting from a command to a market system is ________.

Back 13

china

Front 14

A device that motivates people to take action, usually so as to increase economic efficiency, is called a(n) ________.

Back 14

incentive
or
benefit/reward

Front 15

One of the key elements of a market economy is that ________ be determined freely.

Back 15

prices

Front 16

Another key element of a market economy are private ______ rights.

Back 16

property

Front 17

The direct exchange of one product for another, without the use of money, is called ______.

Back 17

barter

Front 18

The ability of a person to perform an activity or produce a product at a lower opportunity cost than someone else is called _______.

Back 18

comparative advantage

Front 19

The ability of one person to produce all products at a lower cost than someone else is called _______.

Back 19

absolute advantage

Front 20

Ted and Tammy have only two points on their production possibilities frontiers. Ted can produce either 5 kites and 3 puzzles an hours or 3 kites and 4 puzzles and hours. Tammy can produce either 6 kites and 2 puzzles and hour or 2 kites and 5 puzzles and hour. What is Ted's opportunity cost of a kite?

Back 20

1/2 puzzles per kite

Front 21

Ted and Tammy have only two points on their produce either 5 kites and 3 puzzles an hour or 3 kites and 4 puzzles an hour. Tammy can produce either 6 kites and 2 puzzles and hour or 2 kites and 5 puzzles an hour. What is Tammy's opportunity cost of a kite.

Back 21

3/4 puzzles per kite

Front 22

Ted and Tammy have only two points on their production possibilities frontiers. Ted can produce either 5 kites and 3 puzzles an hour or 3 kites and 4 puzzles an hour. Tammy can produce either 6 kites and 2 puzzles an hour or 2 kites and 5 puzzles an hour. Who has a comparative advantage in producing kites?

Back 22

Ted