APPLIED ECONOMICS Flashcards
(22 cards)
Most democratic form of economic system. Based on the workings of the demand and supply.
MARKET ECONOMY
The owner of the capital earns an income called_____.
INTEREST
An Authoritative System. Decision-making is centralized in the government. Holds true in dictatorial, socialist, and communist nations.
COMMAND ECONOMY
The social science that involves the use of scarce resources to satisfy unlimited wants.
ECONOMICS
He described economics as a study of mankind in ordinary business of life.
ALFRED MARSHALL
Man-made resources used in production of goods and services. (Machineries and Equipment)
CAPITAL
The three economic resources are:
LAND, LABOR, AND CAPITAL
Soil and natural resources that are found in nature and not man-made.
LAND
The income received by labors is referred to as______.
WAGE
Decisions are made based on practices upheld over the years. The methods are Stagnant and therefore not progressive.
TRADITIONAL ECONOMY
The three economic systems are:
TRADITIONAL ECONOMY, COMMAND ECONOMY, AND MARKET ECONOMY
Physical and human effort to produce goods and services. Includes manual workers, machine operators, production workers, and professionals.
LABOR
Concerned with the behavior of individual entities such as the consumer, the producer, and the resource owner.
MICROECONOMICS
The reason why people have to practice economics. There are insufficient resources to satisfy all the needs and wants of a population.
SCARCITY
Land owners receive payment known as____.
RENT
Concerned in overall performance of the entire economy. It also studies economic system as a whole rather than individual economics.
MACROECONOMICS
A good is scarce because of the circumstances (ex. typhoon) that surrounds the availability of the goods.
RELATIVE SCARCITY
2 Branches of Economics
MACROECONOMICS AND MICROECONOMICS
The mean through which the society determines the answer to the basic economic problems.
ECONOMIC SYSTEMS
The study of society and how people behave and influence the world around them.
SOCIAL SCIENCE
Also known as factors of production. The resources used to produce goods and services.
ECONOMIC RESOURCES
When supply is limited and we rely heavily on imports.
ABSOLUTE SCARCITY
