Apex Economics Chpt 1.1 – Flashcards
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voluntary
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Done freely without being forced by someone else
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Economy
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Activities related to the production and distribution of goods and services in a particular geographic region.
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List the three features of the games of economics.
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Buyers and sellers A rule against stealing Prices
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Goods
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Objects that satisfy someone's needs or wants.
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List the four features that all games have in common.
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Players, properties, outcomes, rules
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Describe what is involved in allocation.
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Allocation is about making decisions about the use of various resources.
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Example of good
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A sandwich is a good because it fulfills the need for food
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Example of service
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A haircut is a service because it involves work that fulfills a desire for different hair
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Describe what the game of economics is about.
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Economics is about goods and services
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Distribution
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Taking things from one place to another.
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consumption
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Using a good or service.
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allocation
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Setting aside resources for a specific purpose
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resource
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Input used to produce goods and services
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service
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An act or a type of work done for someone else, usually for pay
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barter
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To trade goods or services without the exchange of money.
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production
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The creation of goods and services to satisfy wants and needs
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5 goals of economics
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Efficiency Security Growth Equity Freedom
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Explain why different people have different goals in the game of economics.
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There is no rule that tells players how to play or even what they're supposed to be doing, so different people go after different things.
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Describe efficiency
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Producing something with as little waste as possible
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Describe growth
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Increasing the amount of goods or jobs or money.
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Describe freedom
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the absence of obstacles
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Describe equity
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fairness
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Describe security
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Protection against risk or danger
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Explain why conflict is an unavoidable part of the game of economics.
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Different people have different goals, and these goals are sometimes incompatible.
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Describe two different versions of freedom.
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Freedom from the control of others Freedom from struggle and need
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Factors of production
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Different types of resources needed to produce goods and services.
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scarcity
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When demand is greater than supply.
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List three facts of life that affect the game of economics.
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1. Economic goals are sometimes incompatible. 2. The demand for goods and services is greater than the supply (scarcity). 3. Resources for producing goods and services are limited (scarcity).
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specialize
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To pursue a specific activity, occupation, or field of study.
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Explain why economics is about the allocation of resources for the production and distribution of goods and services.
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Scarcity makes allocation necessary; if there were plenty of goods and services to go around, no one would need to make allocation decisions.
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List the four basic questions of economics.
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1. What is to be produced? 2. How is production to be organized? 3. How are goods and services to be distributed? 4. What is the most effective allocation of resources?
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explain how different economic goals affect the answer to the question, "How are goods and services to be distributed?"
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A fair distribution of goods is one that gives everyone what they deserve, but a distribution based on freedom could mean that some people don't even get what they need since they might make bad decisions on their own.
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Factors of Production
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Land- Natural Resources Labor- Human Effort Capital- Resources created by humans
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security
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Done freely without being forced by someone else.
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property
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A characteristic trait, attribute, or virtue possessed by something.
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outcome
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Something that results from something else.
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exchange
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To give something in return for something else.
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Name the law that results from the requirement that all exchanges be voluntary.
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Law against stealing
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Describe how properties differ from rules.
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The properties of a game follow naturally from the way the rules are written, but they add something to the game that goes beyond the rules.
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Describe the property of supply and demand and explain why it follows from the rules of economics.
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When the supply of something is low and the demand is high, then the price will be high. This is related to the "buy low, sell high" property, which is something that the players of this game want to try to do whenever possible.
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Explain why the game of economics has no winner.
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This game has no rule about when it ends, and it has no points.
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Give an example of an outcome in the game of economics.
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a sale or purchase
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distribution
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Taking things from one place to another.
