Flashcards
Economics
Cards in this deck (46)
- 1EconomicsStudies how how society chooses to use resources to produce and distribute goods and services for people's conception.
- 2ScarcityWhen a society doesn't have enough resources to satisfy the wants and needs of their people.
- 3Factors of productionAll the components necessary to produce society's goods and services
- 4Natural resourcesRaw materials found in nature.
Renewable: Can be reproduced.
Non-renewable: are limited. - 5Human resourcesThe knowledge, efforts and skills people bring to their work or labor.
- 6Capital resourcesNOT the same as capital or money. They are used to produce goods and services.
- 7Entreprenurial resourcesTo meet the changing wants or needs of people. To improve on ways to use resources or create or produce new ones.
- 8Types of economic systemsThese are necessary to use its limited resources effectively. It determines how they are going to be used.
- 9Market economyDecisions are made in the market place. Offers incentives and competition.
- 10Advantages- Provides the individual with options of competing products.
- Freedom to start a business.
- Choose a career. - 11Disadvantages- If the person doesn't have the skills for a job, doesn't get and income.
- Sometimes 1 or 2 businesses control the market. (higher prices, lower quality). - 12Characteristics- Private property.
- Freedom of choice.
- Motive of self-interest.
- Competition.
- System of markets and prices.
- Limited government. - 13Countries with ME- Hong Kong.
- Singapore.
-New Zealand.
- Switzerland.
- United States. - 14Market placeAnywhere money exchanges hands.
- 15PriceAmount of money given or asked for when products are bought or sold.
- 16DemandThe amount of goods and services that consumers are willing to buy at various prices. The consumers determine the demand of a product.
- 17SupplyThe amount of goods and services that producers will provide at various prices. Producers are influenced to supply goods and services by the price in the market.
- 18Equilibrium priceWhen the quantity demanded and the quantity supplied meet. Demand and supply work together.
- 19CapitalismResources are privately owned. You decide everything about your business. Government control over the. market place is minimal, it supports it by removing obstacles.
- 20Profit moveReward for taking a risk that encourages people to start a business.
- 21Command economyPlanned or managed economy. A central authority makes the key economic decision. (government or state).
- 22Advantages- - Guarantees everyone an equal standard of living.
- The state provides a place to live, a job and health care.
- Goods and services are distributed equally.
- State takes care of transportation, utilities and defense.
- Less poverty and crime. - 23Disadvantages- Little choice of what to buy.
- Things that are not considered a necessity are not available.
- Prices are set by the state so there's no incentive to produce a better product.
- Wages are fixed by the state. Same wage in every job. - 24CommunismThe state controls all the resources for the common good. Also decides what to produce, how much and how to distribute it.
- 25SocialismThe state owns major resources and makes the key economic decisions. But, individuals may also own some businesses.
- 26Mixed economyPart of the economy is left to the free market and part of it is managed by the government.
- 27How does it work?Starts from the basis of allowing private enterprises to run most businesses. Then the government intervenes in certain areas of the economy. In reality, most economies are mixed, with varying degrees of state intervention.
- 28Economic indicatorsMeasure things like how much a country is producing, whether it's economy growing, and how it compares to other countries.
- 29ProductivityMeasure for a country's economic health; how much a country produces.
- 30Gross Domestic Product (GDP)Total value of the goods and services produced in a country for a year. (Doesn't include goods and services that weren't reported to the country.)
- 31Standard of livingAmount of goods and services the average citizen can buy. This depends on how much the country produces.
- 32Unemployment rateMeasures the number of people who are able to work but don't have a job during a given period of time.
- 33Reasons for being unemployedTemporary: Looking for a job if you just graduated or if you quit recently.
Seasonal: Work during certain part of the year.
Changing technology: When jobs are replaced by new technologies.
Economic: When economy slows down. - 34InflationGeneral increase in the cost of goods and services.
- 35Why does it happen?- The country being too productive =
hyperinflation.
- Government allowing too much money to economy. - 36DeflationGeneral decrease in the cost of goods and services. When supply of goods is greater than the demand.
- 37TaxesThe main source of income a country has. Used to pay for needs and services.
- 38Budget deficitThe difference in amount when the government spends more on programs that collects taxes.
- 39National debtWhen a country needs money to pay the budget deficit, it borrows it. The total amount of money a country owes.
- 40Budget surplusWhen the government's revenue exceeds its expenditures during 1 year.
- 41What may te government do because of this?- Cut taxes.
- Reduce the national debt.
- Increase spending in certain programs. - 42Business cycleIs the rise and fall of economic activity over time.
- 43Prosperity- Low employment rate.
- Production is high.
- New businesses open. - 44Recession- Spending decrease.
- Demand increases.
- Unemployment rate increases. - 45Recovery- Production increases.
- People go back to work.
- Spending increase. - 46Depression- Low productivity.
- High unemployment.
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- Flashcards on Economics, created by Ximena Espinosa Vidaña on 29/10/2020.
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- Ximena Espinosa Vidaña
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