INTRO TO ECONOMICS Flashcards

1
Q

The economy

A

All the production and exchange activities that take place everyday.

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2
Q

Economic activity

A

The buying and selling that goes on in an economy over a period of time.

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3
Q

Economic system

A

The way in which resources are organized and allocated in order to provide for the needs of the economy’s citizens.

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4
Q

Planned economic system

A

An economic system in which economic decisions are made by a central authority rather than by market participants.

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5
Q

Pure market/capitalist system

A

A free, private economic system that allows voluntary and competing private individuals to plan, produce, and trade without government interference.

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6
Q

A mixed market economy

A

A mixed economy is an economic system wherein free markets and government involvement are able to coexist when it comes to resource distribution, commerce, and trade.

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7
Q

Scarcity

A

Society has limited resources and therefore cannot produce all the goods and services people wish to have.

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8
Q

Economics (in relation to scarcity)

A
  • study of how society manages its scarce resources
  • study of people ‘in the ordinary business of life’
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9
Q

Microeconomics

A

Study of how households and firms make decisions and how they interact in markets.

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10
Q

Macroeconomics

A

Study of economy-wide phenomena, including inflation, unemployment and economic growth.

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