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Flashcards in Intro To Economic Concepts Deck (14):

Define "economics"

Study of the allocation of scarce economic resources among alternative uses.


Identity the major divisions of the field of economics

1. Microeconomics
2. Macroeconomics
3. International Economics


What is microeconomics?

The economic activities of distinct decision making entities, including individuals, households, and business firms.


What is macroeconomics?

The economic activities and outcomes of a group of entities taken together, typically of an entire nation or major sectors of a national economy.


What is international economics?

Economic activities that occur between nations and outcomes that result of those activities.


What are the major types (extremes) of economic systems?

1. Command Economic System
2. Market (free-enterprise) Economic System


What are the characteristics of a Command economic system?

Government largely determines the production, distribution, and consumption of goods and services (Communism and Socialism).


What are the characteristics of a Market (free-enterprise) economic system?

Distinct entities determine production, distribution, and consumption in an open market. (Capitalism)


What is the role of graphs in economics?

Graphs show the relationship between 2 variables, usually referred to independent and dependent variables.


Identify the "X" and "Y" axis of a graph

"X" axis is the horizontal line; "Y" is the vertical line.


Identity the "intercept" on a graph:

The point at which the plotted line intersects the "Y" axis (the zero point on the "x" axis )


What is the meaning of a graphed plot w a positive slope?

The 2 variables move in the same direction


What is the meaning of a graphed plot w negative slope?

The 2 variable move in opposite directions (the dependent variable decreases as the independent increases)


What is a time-series graph?

A graph showing changes in a variable over time. Commonly, time is considered the independent variable and plotted on the horizontal "x" axis.