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Flashcards in Intro To Economic Concepts Deck (14):
0

Define "economics"

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

1

Identity the major divisions of the field of economics

1. Microeconomics
2. Macroeconomics
3. International Economics

2

What is microeconomics?

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

3

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.

4

What is international economics?

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

5

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

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

6

What are the characteristics of a Command economic system?

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

7

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

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

8

What is the role of graphs in economics?

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

9

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

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

10

Identity the "intercept" on a graph:

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

11

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

The 2 variables move in the same direction

12

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)

13

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.