A
Define "market"
A group of buyers and sellers of a given product
Give one country that has a command economy
Cuba/North Korea
What do you call a policy tool that a country uses to prevent trade by imposing taxes on imports?
Tariff
Production/Technology that uses up more human resource rather than machines
Labor-Intensive Technology/Production
What is the assumption of Economics about human needs?
It's unlimited/insatiable
Statements that involve value judgements
Normative Economics/Statements
What does ceteris paribus mean?
Holding all other things constant
Differentiate Microeconomics from Macroeconomics
Micro deals with one market. Macro deals with ALL markets.
Refers to intangible and immaterial products sold such as education
Services
Since Economics is a social science, it cannot use controlled environments to derive its conclusions. What is the alternative?
Past data
An input that refers to the skills of individuals to manage a business and think of innovative ideas to expand it
Entrepreneurial Ability
When AI replaces human work in the future, the technology/production process becomes _______________.
Capital-Intensive
Yesterday, I ate carrots. Today, I was mad at my mom. Therefore, eating carrots leads me to be angry at my mom. What type of fallacy is this?
Post-Hoc Fallacy
Define Economics
A social science that deals with the management of scarce resources and its distribution
Differentiate a Market vs Command Economic System
In a command system, the government dictates the economy. In a market system, private individuals and businesses are free to transact without so much government intervention.
A type of economy with elements of both command and market economy
Mixed Economy
Goods that will no longer be used as an input for production
Final Good
Man-made goods to produce other goods such as machines
Capital
When is inflation good?
When incomes are also rising. It's a sign that businesses are booming/the economy is growing.
If I bought pig food for my pig, and I treat the pig as my pet with no intention of selling it in the future, what type of good is the pig food?
Intermediate Good/Input
The sun is strong. There is no water available. The soil is good. The plant grew. Therefore, no water leads to plant growth. What type of fallacy is this?
Failure to hold other things constant
How can economists disagree over a positive statement?
They may argue about the methodology (ie. how did you compute that?)
What do you call a policy tool that governments use to prevent trade by limiting the quantity allowed to be imported?
Manila has high demand for Milk Tea. Therefore, the entire Philippines is a potential market for Milk Tea. What type of fallacy is this?
Fallacy of Composition
A word we use to incorporate something with the government. Ex. _____________ Finance
Public