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18 Cards in this Set
- Front
- Back
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Economics |
How societies use scarce resources to satisfy unlimited wants and needsm |
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Macroeconomic |
Study of entire economy
- US unemployment, US wages |
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Consumers |
Have needs ( necessary) and wants |
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Producers |
Provide goods |
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Goods v services |
Goods- physical Services- actions for a few Product refers to both |
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Types of resources |
Natural- farmland, rivers, fish... Human Resources- people,managers... Capital- goods/money used to purchase them - structures, machines, tools Entrepreneurs- organizational abilities, and risk taking involved in starting a business |
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Answer to Sacristy |
What to produce- urgency for what is produced How to produce- hire, robots For whom- price, gov, interventions, who... |
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Division of labor |
Make sure resources are used well Separate tasks to different people |
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Opportunity cost |
If u do something u miss out on something else - if u go on a cruise, u cannot reinvest the same money |
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Exchange types |
Barter- goods/services exchanged for goods/services Money-standardized means of exchange, measure of value, store of value Credit-using items before completion of payment |
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Traditional economy |
Based on past customs, rituals, ancestors Answers the 3 economic questions- what, how and whom |
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Command economy |
Relies on gov to answer the questions Gov has complete control Don’t exist All factors of production is owned by gov |
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Market economy |
Individuals answer the questions Gov has little say People buy, sell, produce what they want Free exchange of goods and services No pure one exists |
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Adam Smith |
We are motivated by self interest Self interest benefits all by growing the economy Gov involvement Conflicts with self interest Limits the invisible hand |
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Mixed economics |
Authoritarian socialism Closest to command Gov owns most factors of production Limited individual decisions |
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Capitalism |
Closest to market economy Individuals own factors of production and answers the questions Some regulation Limited gov involvement Private ownership and free choice |
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Incentives matter |
Understand why people do what they do, impacts everything |
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Marginal |
Additional Large or small changes |
