Chapter 1 what is economics guided reading – Flashcards
Flashcard maker : Larry Charles
In what ways does exonomics help us
Our roles as individuals
Members of communites
Globel citizes
Members of communites
Globel citizes
Scarcity
The fundamental economic problem facing all society’s resulting from a combination of scarce resources and peoples virtually unlimited needs and wants
Economics
A social science dealing with how people satisfy seemingly unlimited and competing needs and wants with careful use of resources
Need vs want
A need is a basic requirement for survival a want is something we would like but is not necessary for survival
How do we express our needs and wants
Economic products
4 types of goods
Durable goods, nondurable goods, consumer goods, capital goods
Service
A work or labor preformed for someone; economic product that includes haircuts, home repairs, and forms of entertainment
Paradox of value
An apparent contradiction between the high value of a nonessential item and a low value of an essential item
Utility
The ability or capacity of a good or service to be useful and give satisfaction to someone
Wealth
The sum of a tangible economic goods that are scarce useful and transferable from one person to another ; excludes services
What does TINSTAAFL
There is no such thing as a free lunch
What does TINSTAAFL mean
Some is paying for the lunch even if it is free for you. Taxes
3 economic questions
What to produce
How we should produce
And for whom we may produce
How we should produce
And for whom we may produce
Why is economics considered a social science
It’s the study of people’s wants and needs
4 key elements
Land labor capital entrepreneurs
What is GDP
Gross demotic product : total production
What are the factors of production
Resources required to produce the things we would like to have land labor capital labor entrepreneurship
What are 4 specific factors
Land, labor, capital, entrepreneurs
What does the Production possibilities frontier show
A diagram representing all possible combinations of gods and or services an economy produce when all productive resources are fully employed
Opportunity cost
Cost of the next best alternative use of money time or resources when one choice is made rather then another
Trade-off
An alternative that must be given up when one choice is made rather then another
5 consumer rights
Right to
Safety
Be informed
Choose
Heard
Redress
Safety
Be informed
Choose
Heard
Redress
Consumerism
A social movement that was aimed at promoting the interest of consumers
5 consumer responsibilities
Include important details
Report the problem
Keep cool
Keep an accurate record
Report the problem
Keep cool
Keep an accurate record
When does economic growth occur
Guns and butter graph
New technology
Specialization
New production methods
Increase in labor force
New raw materials
New technology
Specialization
New production methods
Increase in labor force
New raw materials
Why is economic growth important
Scarcity
population growth
population growth
Productivity
The measure of the amount of output produced in a specific time period with a given amount of resources
When does productivity go up
With the efficacy use of resources
Human capital
Sum of people’s abilities health and motivation
Division of labor
Division of work into a number of separate tasks to be preformed by different workers
Specialization
Assignment of tasks to workers factories regions of nations that can preform most efficiently
Circular flow model
Comparison to cost of an action to a benefit
Free enterprise economy
Market Economy in which privately owned businesses have freedom to operate for a profit with limited government interaction
Standard of living
Quality of life based ownership of necessities and luxury that make life easier
