Flashcards
Economic
Cards in this deck (27)
- 1Ch.1 Economicsocial study of scarce resources and the manor in which they are organized to achieve optimum (max) benefits
- 2In Short form - Economic =Scarcity > Choices > Opportunity Cost
- 3Scarcity (Resources)--production of goods+services. Leads to economic problems
- 4Opportunity cost- (Trade off)deals with how economist think and the compared Benefits vs. Cost
- 5FDI-Foreign Direct Investment
- 6Market Economy:->Economic Problems:
-Unlimited consumer wants and limited resources - 73 fundamental questions:1. What to produce
2. How to do it
3. Who is the Target market - 8The production possibilities modelPPA & PPC
- 9economic system such as:-tradition economy
-mixed
-market (dog eat dog world harder you work more you will get)
-command - 10Economic Problems-limited resources
-unlimited wants - 11Economic Environment=->Production -> Consumption
- 12Economic resources-all Items used in production also known as natural , human sources and capital
- 13Positive economica statement of true facts and why it operates as it does
- 14Normative economicis the normal assumption of the topic. As well as how the economy ought to operate
- 15Self interest motive -the assumption the people act to max their own welfare
- 16Input & OutputInput- Resource market
Output-Product market - 17Natural resourcesResources from nature eg. Land
- 18Capital resourcesProcessed material
Eg. Equipment - 19LabourHuman effort employed directly in production
- 20MicroeconomicsThe branch of economic that focuses on the behavior of an individual participants in various market
- 21MacroeconomicBranch of economics that takes a wide ranging view of the economy studying the behavior of economic sector
- 22Economic modelGeneralization about or simplifications of economic reality also known as laws , or theories
- 23Independent variableCasual Relationship that causes change in another variable
- 24Dependent variableCasual Relationship that is affected by another variable
- 25Inverse relationshipChange in the independent variable cause a change in the opposite direction of the dependent variable
- 26Direct relationshipChange in the independent variable. cause a change in the same Direction of the dependent variable
- 27Ceteris paribusThe assumption that all other things remain the same