Economic Development Lecture – UAE & GCC Society

A comprehensive set of question-and-answer flashcards covering key economic concepts, systems, principles, and UAE-specific development strategies discussed in the lecture.

What is the primary focus of economics as a social science?

The production, distribution, and consumption of goods and services.

Which two major branches make up the field of economics?

Microeconomics and Macroeconomics.

What does microeconomics study?

How individual decisions affect the utilization and distribution of scarce resources.

Name two phenomena examined by macroeconomics.

Inflation and gross domestic product (GDP).

In a basic economic system diagram, who sells resources to businesses?

Individuals.

Which economic system is completely determined and controlled by a central authority?

Command economy.

Define a market economy.

An economic system in which individuals own and operate the factors of production.

What is a mixed economy?

An economic system that combines features of both market and command economies.

State the #1 principle of economics relating to scarcity.

Scarcity forces trade-offs; every choice involves giving up something.

Give an example of scarcity involving time.

Finishing homework leaves no time for playing video games before bed.

How is opportunity cost defined?

The value of the next best alternative that must be sacrificed to obtain something.

What is the opportunity cost of attending college instead of working right away?

The income that could have been earned by taking a job after high school.

According to the law of demand, what happens when the price of a good decreases?

Consumers will buy more of it.

List three factors that can affect demand.

Prices of goods, income of consumers, and population trends.

State the law of supply.

The quantity supplied of a good rises when its price rises, ceteris paribus.

Name two factors (besides price) that influence supply.

Prices of factors of production and expected future prices.

What does GDP stand for?

Gross Domestic Product.

How is GDP defined?

The total value of all economic activity within a country in one fiscal year.

If a foreign firm earns profit in India, is it included in India’s GDP?

Yes, because GDP counts all production within the country’s borders regardless of ownership.

How is per capita income calculated?

Total national income divided by the number of people in the nation.

Which country ranked first in Business Insider’s 2020 list of richest countries by per-capita income?

Qatar.

What is the goal for oil’s share of UAE GDP under Vision 2021?

Reduce the share of oil revenues to 5% of GDP.

Name three key non-oil sectors targeted by the UAE for diversification.

Tourism, aviation, and real estate.

What strategy is the UAE using to diversify its energy sector?

Investing in renewable and alternative energy sources such as solar and clean technology.

Which emirate was ranked the world’s most popular destination by Tripadvisor for two consecutive years?

Dubai.

In the classroom example, what economic concept is illustrated by choosing between an iPhone and a Samsung phone?

The law of supply and demand influencing consumer choice.

What is another term for the scarcity-forces-trade-offs principle?

The "no free lunch" principle.

Which economic system is associated with customs, traditions, and agriculture-based societies?

Traditional economy.

Provide an example of a command economy mentioned in the notes.

Cuba.

What does the term "commercial diplomacy" refer to in UAE economic strategy?

Developing and promoting trade relationships with other countries to enhance competitiveness.