Flashcards on Introduction to Economics

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What is economics?

Economics is the study of how individuals, businesses, and societies make choices about the allocation of scarce resources to satisfy their unlimited wants.

What are the two main branches of economics?

The two main branches of economics are microeconomics and macroeconomics.

What is microeconomics?

Microeconomics focuses on the behavior of individual economic agents such as households, firms, and markets.

What is macroeconomics?

Macroeconomics studies the economy as a whole, including topics such as inflation, unemployment, and economic growth.

What is the basic economic problem?

The basic economic problem is scarcity, which means that resources are limited, while wants and needs are unlimited.

What is opportunity cost?

Opportunity cost refers to the value of the next best alternative foregone when a choice is made.

What is the law of supply and demand?

The law of supply and demand states that the price of a good or service is determined by the interaction of supply and demand in a market.

What is GDP?

Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given period of time.

What is inflation?

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.

What is fiscal policy?

Fiscal policy refers to the use of government spending and taxation to influence the economy.

What is monetary policy?

Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates in an economy.

What is comparative advantage?

Comparative advantage is the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.

What is market equilibrium?

Market equilibrium is a state in which the quantity demanded of a good or service is equal to the quantity supplied, resulting in a stable price.

What is the role of government in the economy?

The role of government in the economy includes providing public goods, regulating markets, and promoting economic stability.

What is the circular flow model?

The circular flow model is a simplified representation of how goods, services, and money flow through the economy.

What are the factors of production?

The factors of production are land, labor, capital, and entrepreneurship.

What is economics?

Economics is the study of how individuals, businesses, and societies make choices about the allocation of scarce resources to satisfy their unlimited wants.

What are the two main branches of economics?

The two main branches of economics are microeconomics and macroeconomics.

What is microeconomics?

Microeconomics focuses on the behavior of individual economic agents such as households, firms, and markets.

What is macroeconomics?

Macroeconomics studies the economy as a whole, including topics such as inflation, unemployment, and economic growth.

What is the basic economic problem?

The basic economic problem is scarcity, which means that resources are limited, while wants and needs are unlimited.

What is opportunity cost?

Opportunity cost refers to the value of the next best alternative foregone when a choice is made.

What is the law of supply and demand?

The law of supply and demand states that the price of a good or service is determined by the interaction of supply and demand in a market.

What is GDP?

Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given period of time.

What is inflation?

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.

What is fiscal policy?

Fiscal policy refers to the use of government spending and taxation to influence the economy.

What is monetary policy?

Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates in an economy.

What is comparative advantage?

Comparative advantage is the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.

What is market equilibrium?

Market equilibrium is a state in which the quantity demanded of a good or service is equal to the quantity supplied, resulting in a stable price.

What is the role of government in the economy?

The role of government in the economy includes providing public goods, regulating markets, and promoting economic stability.

What is the circular flow model?

The circular flow model is a simplified representation of how goods, services, and money flow through the economy.

What are the factors of production?

The factors of production are land, labor, capital, and entrepreneurship.

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