Scarcity
What is the fundamental problem in economics?
Scarcity
Increase
Why do governments establish regulations for businesses?
To ensure that the products and services provided are safe and effective.
What is GDP per capita?
The GDP divided by the population of a country.
What is economics?
The study of how people satisfy unlimited wants and needs with unlimited resources.
What is a durable good?
One that lasts for 3 or more years.
Any point on a PPC curve is considered what?
Efficient
An economic system in which the government owns the means of production is what type of economic system?
Command
What does GDP Per capita not take into account when measuring the health of a nation's economy?
Income inequality
What is the difference between scarcity and shortages?
All resources are scarce, a shortage occurs when there is not enough supply to meet the demand.
What is the difference between a good and a service?
Goods are tangible products that one can buy, while a service is something that is done for you.
The cost of producing one more unit of a good is known as what?
Marginal cost
What is the difference between a public good and a provide good?
Public goods are characterized by shared consumption, a private good belongs and is used by a private individual.
What indicators are used to calculate a country's HDI?
Longevity, education, and per capita income?
What is opportunity cost?
The next best alternative when making a decision.
Who first proposed the paradox of value?
Adam Smith
A constant opportunity costs would appear how on a PPC?
A straight line
What is consumer sovereignty?
The idea that consumers get to decide what to buy and when to buy it.
In what ways can technological innovation increase economic growth?
By spurning people to spend money on the latest technology.
North Korea is best classified as what type of economic system?
Command
The education and training of one's employees is known as what?
Human capital
On a production possibilities curve, any point beyond the curve is considered what?
Impossible with given resources.
Most countries around the world use what type of economic system?
Mixed market
Why is it in a company's interest to invest in human capital?
It increases productivity.
A bowed out curve on a PPC graph would be the result of what?
Increasing opportunity cost.