Economics Flash Cards
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- We study economics due to the ________ of resources.
- scarcity
- The best thing you must give up to get something is called _____.
- opportunity cost
- The saying, "There is no such thing as a free lunch," exemplifies the economic concept called______.
- opportunity cost
- The phenomenon in which something must be given up to acquire something else is called a(n).
- tradeoff
- The productive resources used to produce products are also known as.
-
factors of production
or
inputs - The work time and work effort that people devote to producing products is called.
- labor
- The human resource that organizes land, labor, and capital into an enterprise that produces a product is called.
- entrpreneurship
- Claims that attempt to describe the world as it is are called _____ statements.
- positive
- Claims that attempt to prescribe how the world should be are called _____ statements.
- normative
- An economy characterized by freely determined prices and the free exchange of goods and services in markets is known as a(n) _______ economy.
- market
- An economy in which the government determines prices and production is known as a(n) ______ economy.
-
command
or
(centrally) planned - In recent years, most command economies have been engaged in the complex process of converting from a command to a _______ system.
- market
- The country that has been the most successful, in an economic sense, at converting from a command to a market system is ________.
- china
- A device that motivates people to take action, usually so as to increase economic efficiency, is called a(n) ________.
-
incentive
or
benefit/reward - One of the key elements of a market economy is that ________ be determined freely.
- prices
- Another key element of a market economy are private ______ rights.
- property
- The direct exchange of one product for another, without the use of money, is called ______.
- barter
- The ability of a person to perform an activity or produce a product at a lower opportunity cost than someone else is called _______.
- comparative advantage
- The ability of one person to produce all products at a lower cost than someone else is called _______.
- absolute advantage
- Ted and Tammy have only two points on their production possibilities frontiers. Ted can produce either 5 kites and 3 puzzles an hours or 3 kites and 4 puzzles and hours. Tammy can produce either 6 kites and 2 puzzles and hour or 2 kites and 5 puzzles and
- 1/2 puzzles per kite
- Ted and Tammy have only two points on their produce either 5 kites and 3 puzzles an hour or 3 kites and 4 puzzles an hour. Tammy can produce either 6 kites and 2 puzzles and hour or 2 kites and 5 puzzles an hour. What is Tammy's opportunity cost of a kit
- 3/4 puzzles per kite
- Ted and Tammy have only two points on their production possibilities frontiers. Ted can produce either 5 kites and 3 puzzles an hour or 3 kites and 4 puzzles an hour. Tammy can produce either 6 kites and 2 puzzles an hour or 2 kites and 5 puzzles an hour
- Ted