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BASIC ECONOMICS Flashcards

(60 cards)

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1
Q

This tells you about the way resources are allocated among different members of society

A

Economy

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2
Q

An organized system, which encompasses production, distribution, consumption, and exchange of goods and services and level of employment in a nation

A

Economy

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3
Q

The social science which stresses on the behavior, interactions and decisions of economic agents regarding the satisfaction of their wants when the resources are limited

A

Economics

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4
Q

The branch of knowledge concerned with the production, consumption, and transfer of wealth

A

Economics

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5
Q

This is a subject concerned with the OPTIMIZATION of available resources, in an efficient manner.

A

Economics

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6
Q

Difference between the unlimited want and the limited resources

A

Scarcity

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7
Q

An analysis of how limited resources are distributed among producers, and how scarce goods and services are divided among consumers.

A

Allocation

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8
Q

What are the basic notions of economics.

A

Scarcity, Allocation, Establishing goals, end or objectives, and Reference to time must be included.

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9
Q

What are the establishing goals, end or objectives.

A

Freedom, Equity, Progress, Stability, Security, Efficiency, and Full employment.

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10
Q

Factors of Production: It includes raw property and anything that comes from the ground. It can be a non renewable resource or a renewable resource.

A

Land.

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11
Q

Factors of Production: Refers to the work done by people.

A

Labor

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12
Q

Type of skills/labor: labor that requires relatively little or no training or experience for its satisfactory performance

A

Unskilled labor

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13
Q

Type of skills/labor:requires education but it dos not require advance training

A

Semi-skilled labor.

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14
Q

Type of labors/skill: Requires education and advance training

A

Skilled labor.

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15
Q

Types of labor/skills: Example are Doctors, attorney, teacher and etc.

A

Professional labor

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16
Q

Factors of Production: These are man made objects like machinery, equipment, chemicals that are used in production. That’s what differentiates them from consumer goods

A

Capital

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17
Q

Factors of Production: The drive to develop an idea into a business. An entrepreneur combines the other three factors of Production to add to supply

A

Entrepreneurship

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18
Q

Process of purchasing or using the economic resources into the production process

A

Employment

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19
Q

Process of transformation of economic resources into actual goods and services

A

Production

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20
Q

Payment or reward for the use of a resource producing something; money changing hands

A

Income

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21
Q

(circular flow of income) It refers to someone who buys and consume goods and services or own and sell factors of production.

A

Household/consumers

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22
Q

Circular flow of income: Refers to someone who produce and sell goods and services or hires and use factors of production

A

Firm

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23
Q

The actual purchase of final goods and services.

A

Consumption

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24
Q

The branch of economics concerned with the process or resources allocation by individual decision unit or markets which are coordinated by the price system.

A

Microeconomics

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25
The institutions involved in the borrowing and lending of money.
Financial sector
26
Responsible for the collective (community) wants abd obtain resources by imposing taxes on the other sectors of the economy
Government sector
27
Includes all international trade and financial flows that cover all transactions that our economy has with the rest of the world.
Overseas sector
28
Set of policies that tend to affect savings and investments and bring them into desired level.
Monetary policy
29
A sustained and general increase in prices in all or nearly all of the markets in an economy.
Inflation
30
Princes going up every week, then every day, then every hour.
Hyperinflation
31
Anything that is generally accepted and commonly used as a means of payment.
Money
32
Monetary Policy: Interest rate- (Higher or Lower) interest rates reduce demand and lowers inflation
Higher
33
Monetary Policy: Quantitative Easing- (Increase or Decrease) money supply decreases demand to lowers the inflation.
Decrease
34
Monetary Policy: Quantitative Easing- (Increase or Decrease) money supply increases demand and investment to avoid recession
Increase
35
Monetary Policy: Interest rate - (Higher or Lower) interest rates increase consumer spending and investment to avoid recession.
Lower
36
Fiscal Policy: Decrease the taxes and increase the government spending to have a balance and avoid recession.
Expansionary Fiscal Policy
37
Fiscal Policy: Increase the taxes and decrease the government spending
Contractionary Fiscal Policy
38
Policy that controls the import and export of goods
Trade Policy
39
The degree to which a demand or supply curve reacts to a change in price and other determinants
Elasticity
40
Law of demand
As the price increase, the quantity demanded decreases; and as the price decreases, quantity demanded increase. Only true if all things are equal or constant (ceteris paribus).
41
a movement occurs when a change in the quantity demanded is caused only by a change in price and vice versa.
Movement in the demand curve.
42
The same amount of money can buy more goods when prices are lower, but lesser good when prices are higher
Income effects.
43
Consumers tend to buy with lower prices.
Substitution effects.
44
When the demand change but the price stays the same.
Shifting or shift in demands.
45
Law of supply
As the price increase, quantity supplied also increases; and as price decreases, quantity supplied also decrease.
46
The point where the demand and supply meet. Exchange takes place; consumers and resellers are satisfied.
Market equilibrium
47
When the cost of materials is "mahal" , what will happen to supply.
"Mababa" o gamay ra
48
Theory states that humans are motivated to fulfill their needs in a hierarchical order.
Maslow's hierarchy of needs
49
Until the basic needs are met, there is a "trade off" between resource use-waste management and environmental degradation and maintaining the pure state of the natural environment
Resources-Use Choice model
50
It states that the percentage of income allocated for food purchases decreases as income rises.
Engel's Law by Enrst Engel
51
An increase in the quantity of any good consumed or acquired by an individual will decrease the amount of satisfaction derived from that good.
Law of diminishing utility
52
When one factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output.
Law of diminishing returns
53
Involves formulating, estimating, and evaluating the expected economics outcomes if alternatives designed to accomplish a defined purpose.
Engineering economy
54
The analysis and evaluation of the factors that will affect the economic success of engineering projects to the end that a recommendation can be made which will insure the best use in capital
Engineering economy
55
Level of production when the total income is equal to total expense.
Break-even Point(for one decision variable)
56
Value of common variable of two alternatives that will result in equal cost for the alternatives considered.
Break-even Point (of two alternatives)
57
In break even Point, the revenue is equal to the_____.
Total Cost
58
What is the formula for the quantity of no profit.
D= FC/(p-VC)
59
If your quantity is lower than the break even point, what will happen to your profit?
*Gansi, lugi.
60
What is the formula for the quantity of maximum profit? For the maximum revenue?
Dmax.profit= (a-VC)/2b Dmax.revenue= (a/2b)

ENGINEERING ECONOMY (3 decks)

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