Intro to Economics
Economic Systems
Production
100
the idea that resources are limited and cannot meet people's needs and wants. Main idea underpinning Economics.
What is scarcity?
100
Market economy based on. Where private individuals own and use the factors of production.
What is capitalism?
100
a measure of how much output is produced relative to the amount of inputs used
What is productivity?
200
The value of all goods and services in a country in a year, divided by the number of people.
What is GDP per capita?
200
Global economic decline from 2007-2009
What is the Great Recession?
200
the process of separating tasks in a production process so that workers can specialize in certain areas
What is division of labor?
300
Usefulness, the benefit that something gives us. People want to maximize this.
What is utility?
300
An economic system that combines elements of both capitalism (private enterprise) and socialism (government intervention)
What is a mixed economy?
300
The collective knowledge, skills, abilities, and experience possessed by individuals within a population
What is human capital?
400
The value of the next best option that is not chosen when a decision is made
What is the opportunity cost?
400
The desire to make money or gain economic benefit from a transaction, project, or activity
What is profit motive?
400
The factors of production.
What are land, labor, capital, and entrepreneurship.
500
the act of giving up one thing in exchange for another
What is a trade off?
500
Voluntary act of buyers and sellers freely and willingly engaging in market transactions
What is voluntary exchange?
500
The opportunity cost of producing 10 more units of cheese.
What are 20 units of biscuits?