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UNI Fall 2023 > Microecon chapter 1 > Flashcards

Microecon chapter 1 Flashcards

1
Q

Issues of Pressing Concern (7)

A
  • COVID-19 pandemic
  • Population aging
  • Climate change
  • Productivity growth and accelerating technological change
  • Rising protectionism
  • Growing income inequality
  • Government debt and priorities
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2
Q

What is economics?

A

The study of the use of scarce resources to satisfy unlimited human wants

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3
Q

Resources (3)

A
  • Land
  • Labour
  • Capital
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4
Q

Resources synonym

A

Factor of production

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5
Q

Goods are…

A

Tangible

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6
Q

Services are…

A

Intangible

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7
Q

Production is…

A

Act of making goods/services

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8
Q

Consumption is…

A

Act of using goods/services

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9
Q

Scarcity/Choice (3)

A
  • Relative to our desire, existing resources are scarce
  • Not enough resources to produce the goods/services that we want
  • Scarcity implies the need for choice
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10
Q

Opportunity cost

A

The value of the next best alternative that is forgone when one alternative is chosen

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11
Q

Points that lie on or inside the budget line are…

A

Attainable

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12
Q

Points that lie outside the budget line are…

A

Unattainable

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13
Q

PPB stands for…

A

Production Possibilities Boundary

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14
Q

PPB illustrates… (3)

A
  • Scarcity
  • Choice
  • Opportunity cost
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15
Q

Points on the PPB are…

A

Attainable and efficient

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16
Q

Points inside the PPB are…

A

Attainable and inefficient

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17
Q

Points outside the PPB are…

A

Unattainable

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18
Q

Four key economic problem

A
  • What is produced and how?
  • What is consumed and by whom?
  • What are resources sometimes idle?
  • Is productive capacity growing?
19
Q

Resource allocation

A

Determines the quantities of various goods that are produced

20
Q

Idle resources

A

Resources that are not currently being used

21
Q

Economic growth for the PPB (3)

A
  • Boundary shifts outwards
  • Unattainable points become attainable and efficient
  • Previous efficient points become inefficient
22
Q

What can affect the outcome of the economic problems?

A

Government policies

23
Q

GP for production

A

Correct market failures resulting from misallocation of resources

24
Q

GP for consumption

A

Address fairness of distribution of consumption across individuals

25
Q

GP for idle ressources

A

Provide solutions to reduce idleness of nation’s resources

26
Q

GP for productive capacity growth

A

Promote economic growth

27
Q

Self-Organizing market economy

A

When individual consumers and producers act independently to pursue their own self-interests, the collective outcome is coordinated

28
Q

Efficiency in market economy

A

Resources are organized so as to produce the various goods and services that people want to purchase and to produce them with the least possible amount of resources

29
Q

Adam Smith message (2)

A
  • Not motivated by benevolence
  • Act in regard to our own interest
30
Q

Individuals generally pursue…

A

Their own self-interest

31
Q

Individuals responds to…

A

Incentives

32
Q

Sellers usually want to sell more when prices are…

A

High

33
Q

Buyers usually want to buy more when prices are…

A

Low

34
Q

Decision makers in any economy (3)

A
  • Consumers
  • Producers
  • Government
35
Q

Specialization of labour

A

Specialization of individual workers in the production of particular goods and services

36
Q

Division of labour

A

The breaking up of a production process into a series of specialized tasks

37
Q

Money (2)

A
  • Eliminate the barter system
  • Facilitate trade, which facilitate specialization
38
Q

Globalization

A

Increased importance of international trade

39
Q

Major causes of globalization (2)

A
  • Rapid reduction in transportation costs
  • Revolution in information technology
40
Q

Globalization challenges (3)

A
  • Human rights
  • Environmental
  • Production standards
41
Q

Types of economic systems (4)

A
  • Traditional
  • Command
  • Free-market
  • Mixed economy
42
Q

Governments intervene in economies to… (3)

A
  • Correct market failures
  • Provide public goods
  • Offset the effect of externalities
43
Q

Main characteristics of market economies (4)

A
  • Self-Interest
  • Incentives
  • Market price and quantities
  • Institutions

UNI Fall 2023 (21 decks)

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