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Cards In This Set
| Front | Back |
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Economics
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The
science that deals with the production, allocation, and use of goods and services,
it is important to study how resources can best be distributed to meet the
needs of the greatest number of people.
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Because the US bases everything on
price and competition, two economic questions our society must ask is for
______________ they should produce and ____________ they should produce the
goods.
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Who...how.
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In
economics, when you exchange one good for another, you are making a
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Tradeoff
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When
you make one choice, you give up another. The thing that you give up is
called
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Opportunity cost
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Fixed
costs
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Remain
constant despite production
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Variable
costs
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change based on production factors
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Marginal
cost
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Extra cost of producing one additional unit of output
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Both producers and consumers use __________ what goods to produce and
what prices to charge for those goods.
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Cost-benefit
analysis
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A
circular flow of economic activities takes place between______.
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Consumers,
businesses, the government and foreign sectors
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A
measure of the amount of output produced by a given amount of inputs in a
specific period of time is called
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productivity
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When
production and labor focuses on a single skill or activity to improve
productivity, this is known as
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specialization
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When a job is broken down into into separate, smaller tasks performed by different workers for better productivity, this is called |
division of labor
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A
market is a location or other situation that allows buyers and sellers to
exchange a certain economic product. Markets can be
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local, regional, national, and
global
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Two concepts underlie the market system
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People can work for economic gain and government should have a very
limited role in the economy.
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Adam
Smith’s idea that economies work best without lots of rules and regulations
from the government is
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laisse faire.
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