1st test Flashcards
(32 cards)
What is opputunity cost?
- humans have infinate wants and needs but only finiate resources. so whatver you have lost to gain another is the cost.
Possible outcomes for the University question:
-Advantages: students will be more prepared for a digital future, more attention so good image on linz, education
-Disadvantages: JKU less students, agricultural land given up, less oney made by farming, less products made.
Nature of the economic problem:
People have infinate wants and needs but only finiate resources to satisfy those desires.
What are producers and what can they be?
- People who make and sell goods and services
-be managers, business owners, employees
According to economists what?
Any activity that fails to satisfy a want is not a productive activity.
What does production therfore involve?
using resources to make and sell goods and services to satisfy our wants. Resources are imputs to productive activities and goods and services are the outputs
Why are resources imp?
they are used to make goods such as cars, and to provide services, including banking, insurance, health care and policing.
What is known as the factors of production?
Scarce resources used up in the production of goods and services to satisfy our wants.
Include: natural resources, people, machinery, and land.
Land:
(natural resources): include seas, rivers, forsests, deserts, minerals, chemicals and gases from the air and the earths crust.
Labour:
People provide the physical and mental effort to make goods and services. The size and ability of an economys labour force are very imp. in determening the quality of the goods and services that can be produced. The greater the nbr of workers, and the better educated and skilled they are, the more an economy can produce.
Enterprise:
A firm is an organisation that owns a factory or a nbr of factorys, offices, or perhaps even shops, where goods and services are produced. The ability to run a production process is known as enterprise. The people who have enterprise and can control and manage firms are called entrepreneurs.
Capital:
Capital: The man made resources which help produce many other goods and services.
What are the 4 factors of production?
Capital, labour, land, enterprise
What is an economic system?
is a system of production, resource allocation and distribution of goods and services within a society
How is an economic system determined?
- What to produce
- How to produce
- whom to produce for
What do the 3 main types of economic systems depend on?
on how much government involvment there is in making descions:
about how resources are used ,
what goods and sevices are produced
and for whom.
What is an economy?
people, firms produce, exchange and consume goods and services in an economy.
Market.E.S examples:
Mexico, canada, usa
Who makes the decisions in a market.e.s
taken by private sector organisations and individuals. There is no role for the government or a public sector and therefor no taxes or public spending.
How do firms produce? market.es
Firms will produce what consumers want in the most cheap possible way to increase their profit.
What depends on how stuff is produced in a market.es?
depends on what consumers are willling to pay for and want.
What is a profit?
the amount of money a firm makes from selling its goods.
What is a mes and what is it made up of?
- Is any set of arrangments that bring together all the producers and consumers of a service so they may engage in exchange.
- made up ofall the producers willling and able to make and supply that particular product and those consumers willing and able to buy it.
Planned econmony examples?
China, north korea
