Sign in to save your progress, vote, and build your own decks.Sign in
Econ 1 - BC
chapter 1
20 cards·by amytime99
What is the distinction between micro and macro economics?
Micro is small (household, town) Macro is large (national economy)
What is another name for personal economics?
Consumer economics
What is the most basic economic problem every economy faces?
Scarcity
What type of economy do Cuba, China, North Korea and Vietnam have?
Mixed leaning command
What do we call the cost of forgoing one product or choice for another?
Opportunity cost
What is a cost benefit analysis and what do we use it for?
What people use to measure the cost of benefits. To make choices or decisions between options.
What are the limitations of making every decision by using cost/benefit analysis?
Some things can't be represented in numbers
What do we mean when we say a product gives us utility?
Usefulness and satisfaction.
What is the distinction between a good and a service?
Good = product Service = act (Like a haircut)
Name the 4 factors of production:
Land, entrepreneur, labor, capital good.
What do we call the machines that can be used to produce other goods?
Capital goods
What do we call the finished goods that we buy?
Consumer goods.
What is an entrepreneur?
Person taking risk to bring other 3 factors together.
What 3 basic questions must every economy answer?
What goods and products? How? and for whom?
Who answers the basic economic questions in a market economy?
governement
What do we call the part of the economy owned or managed by private interests?
Private sector
What do dwe call the part of our economy that is owned or managed by the government?
public sector
Who answers the basic economic questions in a command economy?
government
What are almost economies today?
mixed
What do we call an economy that trades goods and services for other goods and services?
Barter Economy