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25 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Macroeconomics |
Economics on a larger scale e.g globally |
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Microeconomics |
Looking at the economy on a smaller scale e.g local |
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Social science |
Looking at society in a scientific way |
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Ceteris Paribus |
The latin term meaning “other things being the same” or “the same variables as the norm” |
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The 4 factors of production |
Land, Labour, Capital, Enterprise |
LNKEt |
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Positive economic statement |
These statements can be made and tested to be proved true or false. |
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Normative economic statement |
They are value judgements or opinions and cant be tested. |
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The basic economic problem |
Humans have infinite wants and needs but we have the problem of scarcity. |
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Renewable resources |
A resource that is replaced by natural processes that is persistent in the natural environment |
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Non-renewable resources |
A resource that does not renew itself sufficiently for sustainable economic extraction in meaningful human time-frames |
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Economic systems |
An attempt to answer the economic problem of scarcity. What to produce? How to produce? Whom to produce for? |
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Specialisation |
When individuals or companies focus on certain goods or services |
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Specialisation |
When individuals or companies focus on certain goods or services |
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The division of labour |
When the process of goods or services is divided into individual tasks and each task is the main job to one worker |
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Surplus |
Once too much of something is produced people will look to exchange. A double coincidence of wants will lead to bartering. Bartering is useful until not everyone has goods to swap thus money is used. |
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Functions of money |
1. Medium of exchange 2. Store of value 3. Unit of account 4. Standard of deferred payment |
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Characteristics of money |
P- portable, easy to carry A- acceptable, accepted by all D- divisible, into small amounts D- durable, last over time L- limited, limited supply E- extremely difficult to forge R- recognisable, as money |
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Market |
Where buyers and sellers meet to exchange goods or services. The aim if a market is to determine the price of something. |
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Objectives of the economic actors. Consumers |
To buy a product for the best possible price Quality |
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Objectives of economic actors. Workers. |
Wages Good working conditions |
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Objectives of economic actors. Firms. |
To look for investments Profit |
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Objectives of economic actors. Government. |
Ensure the market is stable Stop unfairness and unlawfulness Prevent certain goods for going on the market |
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Types of goods. 1. Consumer goods 2. Capital goods 3. Economic goods 4. Free goods |
1. What we buy to use 2. Machinery bought to make more consumer goods 3. Made with finite resources so it will have an opportunity cost. 4. Made using infinite factors of production so no opportunity cost. |
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PPF or PPC |
Shows the maximum ammount of one good we can make given a certain amount of another when all resources are being used efficiently. |
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Opportunity cost |
The cost of any choice in terms of sacrificing the next best thing you did not do. |
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