Economics Flashcards
(20 cards)
What is the study of ham socidy?
Allocation of scarce resources
What does the term ‘opportunity cost’ refer to?
The cost of forgoing the next best alternative
List the factors of production.
- Land
- Labour
- Capital
- Enterprise
Define ‘Land’ in economic terms.
Anything that is naturally available to produce goods or services
What is meant by ‘Labour’ in the context of production?
Any people used in the production process, such as workers or farmers
What does ‘Capital’ refer to in economics?
An asset made by people, used in the production process
Who is referred to as ‘Enterprise’ in economic terms?
A person who brings all the factors of production together
Fill in the blank: _______ consumes goods or services.
[Consumer]
True or False: ‘Labour’ includes only physical work.
False
What is the role of ‘Enterprise’ in the production process?
To combine all factors of production
True or False: ‘Land’ can only be agricultural.
False
What is structural unemployment?
Structural unemployment is caused by structural changes in the economy that affect the labor market due to changed demand
Workers displaced by structural unemployment need to retrain or re-skill for new jobs.
What type of jobs are most impacted by structural unemployment?
Jobs involving routine tasks are most impacted by structural unemployment
This can affect older workers and communities dependent on specific industries, such as coal-mining.
What is cyclical unemployment?
Cyclical unemployment occurs due to fluctuations in the business cycle, with more workers needed during periods of high demand and spending
Less labor is needed during economic slowdowns.
What drives the demand for labor?
The demand for labor is derived from the demand for goods and services
When economic activity slows down, the demand for labor decreases.
Which occupations are harder to find during an economic slowdown?
Building and construction, retail, and hospitality occupations are harder to find during an economic slowdown
These sectors often experience significant fluctuations based on economic conditions.
True or False: Structural unemployment only affects younger workers.
False
Structural unemployment can also impact older workers who need to adapt to new job requirements.
Fill in the blank: _______ unemployment is linked to changes in the economy that require workers to retrain or re-skill.
Structural
What happens to the demand for labor during a business cycle downturn?
The demand for labor decreases
This is a characteristic of cyclical unemployment.
What is the relationship between economic activity and employment levels?
Higher economic activity leads to more employment, while lower activity results in reduced employment
This is a key principle of cyclical unemployment.
