Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
11 Cards in this Set
- Front
- Back
Ceteris Paribus |
All other variables remain constant, it allows economists to simplify and explain causes and effects. |
|
Positive Statement |
A statement that attempts to assess an objective reality without making a value judgment. |
|
Normative Statement |
A statement that contains a value judgement and are based on personal beliefs rather than objective fact. |
|
The Basic Economic Problem |
How to allocate infinite wants and needs with only finite resources. |
|
A Free Market Economy |
An economy with little government interventionn or regulation. Buyers and sellers arrive at prices based on supply and demand. |
|
A Command Economy |
The government determines what is produced, how it is produced and how it is distributed. The government employs all workers and unilaterally determines their wages |
|
Production possibility frontiers |
A curve that illustrates the possible quantities that can be produced of two products if both depend on the same finite resource. It shows the maximum possible output of an economy. |
|
Specialisation |
The process wherein a company or individual decides to focus their labour on a specific type of production. This increases the quality of their labour however can lead to an inflexible workforce |
|
Division of labour |
The seperation of tasks in a production process, workers are assigned smaller and more manageable tasks that contribute to a larger overall activity. |
|
The four function of money. |
A medium of exchange, a measure of value , a store of value, a method of deferred payment. |
|
Mixed Economy |
A blend of the free market and planned economy as individuals, firms and the government own factors of production and distribute goods/services. |