economics (intro to econ)

5.0(2)
studied byStudied by 6 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/7

flashcard set

Earn XP

Description and Tags

Economics

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

8 Terms

1
New cards
economics
study of how to distribute scarce resources to a society with unlimited wants and needs
2
New cards
3 basic economic questions
what should be produced
how should things be produced
who should get the things produced
3
New cards
scarcity
limited amount of resources for a population with infinite wants and needs, necessitates choice
4
New cards
free market
prices are used to ration goods and services, production is left in private hands, supply and demand determine how much wages and prices are, individuals decide how and what to make
5
New cards
economic goods
goods that are scarce, finite
6
New cards
free goods
goods that are not scarce, infinite
7
New cards
opportunity cost
real cost of choosing one thing over the other, next best option forgone
8
New cards
production possibility curve
‘X’ is impossible, it is outside of the realm of possibilities
❖ ‘A’ indicates unused or underused resources (unemployment, etc.), it is inefficient
❖ The red line represents the economy operating at full capacity (using all resources efficiently)
❖ At point B the ‘economy’ is producing lots of fish
❖ To move from B to C, or to make more coconuts, it must come at the opportunity cost of fish.
‘X’ is impossible, it is outside of the realm of possibilities ❖ ‘A’ indicates unused or underused resources (unemployment, etc.), it is inefficient ❖ The red line represents the economy operating at full capacity (using all resources efficiently) ❖ At point B the ‘economy’ is producing lots of fish ❖ To move from B to C, or to make more coconuts, it must come at the opportunity cost of fish.