Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
What are the 4 factors of production?
|
Land
Labor Capital (Investment goods) Entrepreneurial Ability |
|
What are the 4 responsibilities of an entrepreneur?
|
1) Takes initiative
2) Makes strategic decisions 3) Innovator 4) Risk bearer |
|
What are the 4 resource payments?
|
Rent
Wages Interest Profits |
|
Full employment means?
|
Us eof all available resources
|
|
Productive efficiency?
|
Production of G+S thru LEAST COSTLY WAY
|
|
Allocative Efficiency?
|
Least-cost production of THOSE G+S that provide MAXIMUM SATISFACTION OF ECONOMY'S WANTS.
|
|
Production Possibilities Model assumes what 4 things?
|
1) Full employment and productive efficiency
2) Fixed resources 3) Fixed technology 4) Only two goods produced in economy: Consumer (Pizza) and Capital (Robots) |
|
Number 1 Economizing Problem (Think 'lunch')
|
There is no such thing as a free lunch.
|
|
Production Frontier?
|
Shows the limits of attainable outputs
|
|
Law of Increasing Opportunity Costs?
|
The more of a product that is produced, the greater is its opportunity cost ("marginal" being implied)
|
|
Problem with Adaptability?
|
Economic Resources are not completely adaptable to alternative uses
|
|
Increases in Economic Growth due to:
|
1) Increases in Technology
2) Increases in Quantity and Quality of Resources |
|
What 2 international factors enable a nation to obtain more goods than its PPC indicates?
|
International Trade
International Specilization |
|
What are the 2 types of economic systems?
|
Market System
Command System |
|
Market System?
|
·Capitalism
- Private individuals own most resources and markets coordiante most economic activity |
|
Command System?
|
·Socialism, Communism
- Government owns most resources and central planners coordinate most economic activity |
|
4 contributors to Cicular Flow Model (from top and clockwise)?
|
Resource Market
Households Product Market Businesses |
|
Flow of Circular Flow Model?
|
From Resource Market, Money income flows clockwise
From Resource Market, Resources flow (real flow) counterclockwise |
|
Relationship btwn Households and Resource Market
|
Households give Resources to Market in exchange for Income
|
|
Relationship btwn Households and Product Market
|
Product Market sells the products in exchange for Consumption Expenditures
|
|
Relationship btwn Businesses and Resource Market
|
Businesses pay costs of resources in exchange for resources
|
|
Relationship btwn Businesses and Product Market
|
Businesses give G+S (aka products) in exchange for Revenue
|