Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

macro > test 1 > Flashcards

test 1 Flashcards

1
Q

what is economics

A

how society uses its limited resources to satisfy its unlimited human wants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is the problem with economics

A

resource scarcity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

why is economics a social science

A

concerned with how individuals, groups, societies respond to scarcity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is macroeconomics

A

study of the behaviour of the economy as a whole. Nation-wide. Focuses on the aggregate economic values like inflation, national income and outputs. Measured by the gross domestic product (GDP) or gross national product (GNP) and unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is microeconomics

A

how specific industries function within the economy, individual units (firms, households)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is opportunity cost

A

resources are scarce so every choice involves giving up another opportunity. Value of the best alternative that must be given up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is the OC formula

A

OC= explicit cost + implicit cost - sunk cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is the explicit cost

A

direct outlay or spending of $ on a choice

EX.: decision to attend uni is the tuition fees or transportation costs that you must pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is the implicit cost

A

not a direct outlay, represents a value given up

EX.: while in uni, you give up the salary that you could be earning if you didn’t decide to attend

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the sunk cost

A

irreversible cost irrelevant to a decision
EX.: Thomas wants to buy a resto, spends 1500$ to see if he can afford it, turns out secant afford it so that 1500$ is lost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is the positive economic analyses

A

based on statements that can be tested by observing the facts . View the world as it is

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is the normative economic analyses

A

based on value judgement. View the world as it should be

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is scarcity

A

when human wants exceeds the productive capacity of existing limited resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are human wants

A

goods and services (commodities) that we wish to consume and that have value in return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are resources

A

the inputs used in the production of the things that we want

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are natural resources (land)

A

nonhuman gifts of nature

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is labor

A

productive contributions made by workers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is human capital

A

education and training of workers (increases productivity)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what is physical capital

A

available stocks of factories, equipment, machinery, and infrastructure used in production. Man-made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is entrepreneurship

A

Human Resources that perform the functions of risk taking, organizing, and managing the other factors of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

is financial capital a productive resource

A

NO. it is the financial assets that measure one’s ownership and access to goods, services, and physical capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

is financial capital a productive resource

A

NO. it is the financial assets that measure one’s ownership and access to goods, services, and physical capital (money, bonds, stocks)

23
Q

what are factor incomes

A

amount of payment or reward received by each type of resource for it’s contribution to procution

24
Q

what is the factor income for land

25
what is the factor income for human resource (labor and human capital)
wages and salaries
26
what is the factor income for physical capital
interest and dividends
27
what is the factor income for entrepreneurship
profit
28
what is the production possibilities curve
a graph of all the possible production combinations of two goods or services that can be produced. Trade off between two goods. Measured over a specific time period. No technological change over that time frame. No increase or decrease in the quantity or quality of the resource
29
what is a production possibilities schedule
table that can be graphed and converted into a PPF/PPC
30
what does it mean if a point is above and below the PPC
above: unobtainable, resources are scarce below: can be produced but inefficient because of unemployment. Possible to produce more of one good without decreasing the quantity of the other good
31
how to calculate OC from PPC
OC=what we give up/what we get
32
formula of OC of cars (with wheat)
OCcars=change in wheat/change in cars
33
formula of OC of wheat (with cars)
OCwheat=change in cars/change in wheat
34
what is a market
meeting place or a set of rules that connect two groups of economic agents in the exchange of goods and services
35
what is a demand
quantities of a specific good or service that consumers in a particular market are willing to purchase at various possible prices, ceteris paribus
36
what is the law of demand
there is an inverse relationship between the price of any good or service and its quantity demanded downward slope
37
what are the three forms of market demand
1. market demand schedule (table) 2. market demand curve (graph) 3. market demand equation *not on test
38
what is a supply
quantities of a specific good or service that firms are willing to sell at various possible prices
39
what is the law of supply
there is a direct relationship between the price of any good or service and its quantity supplied upward slope
40
what are the free forms of market supply
1. market supply schedule 2. market supply curve 3. market supply equation
41
what is a market equilibrium
- putting supply and demand together | - point where quantity supplied and demanded are equal
42
what are the two dimensions of the market equilibrium
1. equilibrium price (P*): price where Qs=Qd | 2. equilibrium quantity (Q*): quantity bought and sold at the P*
43
what is a market disequilibrium
- Qd is not equal to the Qs at any price | - when firms want to supply more or less of a good or service than buyers want to purchase (Qd>Qs, Qd
44
what are the two cases of market disequilibrium
1. excess supply (surplus): Qs exceeds Qd at any price (Qs-Qd=positive number) (P goes down) (P>P*) 2. excess demand (shortage): Qs is less than Qd (Qs-Qd=negative number) (P goes up) (P

45
what does productive efficient mean
when all available resources are used fully and efficiently in a way that maximizes the economy's total output of goods and services. Impossible to produce more of one good without decreasing the quantity of the other good
46
what is allocative efficiency
when the one production combo of goods and services most highly valued by society is produced
47
what are commodities
goods and services -goods: standard, physical/tangible goods digital goods -services (intangible items)
48
what are standard/physical goods
tangible and can be touched, rival goods (cannot be used by more than 1 person at the same time)
49
what are digital goods
stored and transferred in digital form, non-rival (your whole family is watching Netflix at the same time)
50
what are services
intangible forms of work done for others (educational services)
51
what is a shift in demand
increase in demand, which means the P* also goes higher \\ (second one) vice versa
52
what are the determinants of demand
``` income tastes and preferences price of related goods expectations population (number of buyers) ```
53
what is a shift in supply
increase in supply, which means the P* goes down // (second one) vice versa
54
what are the determinants of supply
``` costs of inputs technology and productivity taxes and subsidies price expectations number of firms in the industry ```

macro (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions