1/25
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
---|
No study sessions yet.
Microeconomics
The study of individuals, households and firms' behaviour in decision-making and allocation of resources.
Macroeconomics
The study of the behaviour and performance of an economy as a whole, focusing on total changes such as unemployment and inflation.
Positive
Fact-based economic statements that can be tested and validated, such as 'Government provided health-care increases public expenditure.'
Normative
Subjective economic statements based on opinions or value judgments, such as 'The government should provide basic healthcare to all citizens.'
Relative Scarcity
The condition where resources are limited compared to the demands placed upon them by wants and needs.
Opportunity Cost
The value of the next best alternative that must be forgone when a decision is made to use resources in a certain way.
Production Possibility Frontier (PPF)
A model that illustrates different combinations of two goods that can be produced with a given set of resources.
Allocative Efficiency
A situation in which resources are allocated in a way that maximizes the total benefit to society.
Productive Efficiency
A situation where an economy is producing at the lowest possible cost.
Economic Agents
Individuals and organizations that make economic decisions and interact in the economy.
Incentives
Benefits or rewards used to encourage particular economic behaviour.
Disincentives
Costs or penalties used to discourage specific economic decisions.
Cost–Benefit Analysis
A process for comparing the expected costs and benefits of a particular action or project to determine the best option.
Trade-offs
Choices made by economic agents that involve sacrificing one good or service for another.
Market Economy
An economic system where the production and prices of goods and services are determined by supply and demand.
Planned Economy
An economic system where the government makes all decisions regarding production and distribution of goods and services.
Mixed Economy
An economic system that combines elements of both market and planned economies.
Traditional Economic System
An economic system based on customs, traditions, and beliefs, typically in small communities.
Material Living Standards
The ability of households to access goods and services.
Non-material Living Standards
Factors that influence wellbeing beyond just material access, such as air quality and job satisfaction.
unemployment rate
4-4.5%
GDP rate
3-3.5%
inflation rate
2-3%
Budgetary policies
Government measures that alter revenues and expenditures to stimulate or slow economic growth.
monetary policies
Actions taken by the RBA to alter the cash (interest) rate to stabilize the business cycle.