Flashcards
Economics Cie
Flashcards do conjunto (63)
- 1GoodsPhysical objects that are tangible and satisfy human wants and provide utility
- 2ServicesIntangible products
- 3WantsThings that consumers would like to have but are not necessary for immediate physical survival
- 4NeedsThings/ products that we need for survival
- 5ResourcesGoods used to produce other goods.
- 6ScarcityAn economic concept that means that there is an excess of wants and needs compared to the number of resources available.
- 7If a good/service is scarce then...it must be paid for
- 8Economic goodany good or service that has a price and is being rationed
- 9Free Goodgoods that aren't scarce and therefore and don't have to be paid for e.g air
- 10Choicehappens because there is scarce resources so resources have to allocated
- 11Opportunity Costthe cost expressed in terms of the best alternative forgone
- 12Do Free goods have O.C?No, because they are not scarce.
- 13Do Economic goods have O.CYes because they are scarce and if a g/s have o.c then it has to be relatively scarce
- 14Utilitya measure of usefulness and pleasure a consumer receives when they consume a product.
- 15Total UtilityThe total satisfaction gained from consuming a certain quantity of a product
- 16Marginal UtilityThe extra utility gained from consuming one more unit of a product
- 17What is the basic economic problemThe questions that society have to answer when wanting to produce. Include What to produce, how to produce and for whom to produce for.
- 18What are the factors of productionLand. Labour. Capital. Entrepreneurship
- 19what is LandAll raw materials and cultivated natural resource
- 20What is LabourHuman resources used in the production of goods and services
- 21CapitalThe tools and technologies that are used to produce goods and services.
- 22Physical capitalThe stock of manufactured resources e.g machinery and tools used to produce goods and services in the economy.
- 23Human CapitalThe value of the workforce
- 24What affects human capitalInvestment in education or healthcare
- 25Entrepreneurshipthe innovation and creativity applied in the production of goods and services
- 26What do Entrepreneurs do- take risks
- organise the other factors of production to produce goods and services - 27Positive statementsa statement that is based on actual evidence and can be proved wrong or right by looking at facts. It's an analysis of what is
- 28Normative statementsA statement which expresses a value judgement. It's an analysis of what ought to be.
- 29consumptionthe process by which consumers satisfy their wants
- 30Short runtime period when a firm can only change some but not all factor inputs
- 31Long runtime period when all factors of production are variable
- 32specialisationthe process by which individuals, firms and economies concentrate on producing those goods and services where they have an advantage over others
- 33Marketwhere buyers and sellers get together to trade
- 34Division of labourwhere a manufacturing process is split into a sequence of individual tasks
- 35Economic stucturethe way in which an economy is organised in terms of sectors
- 36Economic systemthe means by which choices are made in an economy
- 37Market economyone where most decisions are taken through market forces
- 38Command or planned economyone where resource allocation decisions are taken by a central body
- 39Mixed economyone where market forces and government, private and public sectors are involved in resource allocation decisions
- 40Market mechanismwhere decisions on price and quantity are made on the basis of demand and supply alone
- 41Production possibility curvea simple representation of the maximum level of output that an economy can achieve when using its existing resources in full
- 42Reallocation of resourceswhere resources are deliberately moved from one product to another
- 43Factor mobilitythe ease by which factors of production can be moved around
- 44Economic growthrepresented by a shift outwards of the PPC. Could be due to an increase in the quantity and/or the quality of resources available or an advance in technology
- 45Capital consumptionthe capital required to replace that which is worn out
- 46Investmentthe creation of capital goods
- 47Developing economyone that has a low income per head
- 48Moneyanything that is generally accepted as a means of payment
- 49Near moneynon-cash assets that can quickly be turned to cash
- 50Liquiditythe extent to which there is an adequate supply of assets that can be turned into cash
- 51Liabilitiesdebt obligations
- 52functions of money1) A medium of exchange
2) A unit of account
3) A standard for deferred payment
4) A store of wealth - 53Private goodconsumed by someone and not available to anyone else
- 54Rivalrywhen consumption by one person reduces availability for others
- 55Public goodA good which is non-rivalry and non-excludable and difficult to charge a direct price
- 56Quasi-public goodgoods that have some but not all characteristics of a public good
- 57Free ridersomeone who does not pay to use a public good
- 58Merit goodone that has positive effects when consumed
- 59Demerit goodone that has adverse effects when sonsumed
- 60Information failurewhen people do not have the full or complete information
- 61Paternalisma situation where society knows best and has some right to make a judgement
- 62Adverse selectionwhere information failure results in someone who is unsuitable obtaining insurance
- 63Moral hazardthe tendency for people who are insured or otherwise protected to take greater risk
Informações
- Descrição
- A level Economics FlashCards sobre Economics Cie, criado por Nora Maganga em 14-12-2017.
- Criado por
- Nora Maganga
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