Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > Theme 1 > Flashcards

Theme 1 Flashcards

1
Q

Define Ceteris Paribus

A

All things are equal

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

What is a Positive Statement

A

A state the is factual and can be tested

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

What is a Normative Statement

A

A statement that hold Valued Judgement

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

What are the Factors of Production

A
  • Captial
  • Enterprise
  • Land
  • Labour
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define Opportunity Cost

A

Giving up the next best alternative when making a decision

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

State three factors that affect PPF

A
  • Technology
  • Population
  • Size of Work Force
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a Command Economy

A

An economy where resources are owned and allocated by the government

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

What is a Free Market Economy

A

An economy where the government has little/ no control

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

What are 2 Advantages of a Free Market Economy

A
  • Increased Efficiency of resources
  • Greater flexibility to changes in consumer wants
  • Competition
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are 2 Disadvantages of a Free Market Economy

A
  • Can lead to Monopolies
  • Inequality
  • Externalities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are 2 Benefits of a Command Economy

A
  • Greater Equality
  • Full employment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are 2 Disadvantages of a Command Economy

A
  • No Consumer Sovereignty (All decisions are made by the state)
  • Inefficiencies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Specialisation

A

Focusing on the production of one good or service

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

State 2 Benefits of Division of Labour

A
  • Increased Quality
  • Lower Labour Costs
  • Increased Speed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

State 2 Drawbacks of Division of Labour

A
  • Boredom
  • Loss of skill is some is absent
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define Division of Labour

A

Splitting a task into smaller manageable tasks

17
Q

What are the 4 Functions of Money

A
  • Means of Exchange
  • Measure of Value
  • Store of Value
  • Measure of Deferred Payments
18
Q

What is meant by Means of Exchange as a Function of Money

A

The ability for consumers to get a good or service they wish to buy

19
Q

What is meant by Store of value as a Function of Money

A

The ability to save money allowing them to are future purchases

20
Q

What is meant by Means of Deferred Payment as a Function of Money

A

The ability to buy a good or service using credit

21
Q

What is meant by a Measure of Value as a Function of Money

A

The ability to assess the value of different goods and compare the prices

22
Q

What are 3 Factors that can cause consumers to act Irrationally

A
  • Herd Mentality
  • Computational Weakness
  • Habitual Behaviour
23
Q

What are 6 factor that affect Demand

A
  • Trends
  • Income
  • Price of Substitutes
  • Price of Complements
  • Size op Population
  • Amount for Advertising
24
Q

Name 5 Factors that affect Supply

A
  • Barriers to Entry
  • Resources
  • Inventory
  • Time
  • Spare Capacity
25
Q

Define Price Elasticity of Demand

A

The responsiveness of Demand where there is a change in Price

26
Q

What is the formula for PED

A

PED = % Change in Demand / % Change in Price

27
Q

What are the 6 factors that affect PED

A
  • Proportion of Income
  • Luxury
  • Addictiveness
  • Necessity
  • Trends
  • Substitutes
28
Q

Define Price Elasticity of Supply

A

The responsiveness os Supply to a change in Price

29
Q

What is the equation for PES

A

PES = % change in Quality Supplied / % change in Price

30
Q

Define Cross Elasticity of Demand

A

The responsiveness on Supply in Good A due to a in Price of Good B

31
Q

What is the Equation for XED

A

XED = % Change in Quantity Supplied of Good A / % Change in Price of Good B

32
Q

What numerical value does a Substitute Good have

A

Positive

33
Q

What Numerical value does a Complementary Good have

A

Negative

34
Q

What 5 Factors affect PES.

A
  • Barriers to Entry
  • Resources
  • Inventory
  • Time
  • Spare Capacity
35
Q

Define Income Elasticity of Demand

A

The responsiveness of Demand to a Change in Income

36
Q

What is a Normal Good

A

A Good where Income rise Demand Rises

37
Q

What is a Inferior Good

A

A Good where Income rises Demand falls

38
Q

What are the 3 Price Mechanisms

A
  • Rationing
  • Signalling
  • Incentive

Economics (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions