Economics Basics Flashcards
(21 cards)
What is supply?
The total amount of a specific good or service that is available to consumers.
What is demand?
An economic concept that relates to a consumer’s desire to purchase goods and services and willingness to pay a specific price for them.
Who is a consumer?
A person who purchases goods and services for personal use.
Who is a producer?
A person, company, or country that makes, grows, or supplies goods or commodities for sale.
What are quotas?
A limited quantity of a particular product which under official controls can be produced, exported, or imported.
What is scarcity?
The demand for a good or service is greater than the availability of the good or service; the good is in short supply.
What is economic theory?
A set of ideas and principles that outline how different economies function.
What is equilibrium?
A state in which opposing forces or actions are balanced.
What is an industry?
Economic activity concerned with the processing of raw materials and manufacture of goods in factories.
What does sustainable mean?
Able to be maintained at a certain rate or level.
What is arbitrage?
An investor simultaneously buys and sells an asset in different markets to take advantage of a price difference and make a profit.
What is a monopoly?
A market structure with a single seller, selling a unique product in the market.
What is a cartel?
Where two or more businesses agree not to compete with each other to keep prices up.
What is a competitive market?
A structure in which many buyers and sellers exist, and no single consumer or producer has the power to influence the market.
What are barriers to entry?
Factors which prevent or deter the entry of new firms into an industry even when incumbent firms are earning excess profits.
What is mercantilism?
A form of economic nationalism that sought to increase the prosperity and power of a nation through restrictive trade practices.
What are tariffs?
Tax or duty to be paid for imports or exports.
What is free trade?
International trade left to its natural course without tariffs, quotas, or other restrictions.
What is specialization?
A particular area which someone concentrates on or is an expert in.
What is productivity?
Measures output per unit of input, such as labor, capital, or any other resource.
What are factors of production?
Labor, capital, land, and entrepreneurship.
