11938009
Description
Flashcards by Asayena Viengmany, updated more than 1 year ago
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Created by Asayena Viengmany
almost 7 years ago
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| Question | Answer |
| What is Economics? | The study of how humans make decisions in the face of scarcity |
| Scarcity | human wants for goods, services, and resources EXCEED what is available (ex: time; 24 hours a day) |
| Division of Labor | a good or service that is divided into a number of tasks that are performed by different workers (hint: assembly line) |
| Specialization | particular small job that allows workers to focus on parts of the production process and have an advantage |
| Specialization increases _______ and _______. | Productivity and Quality |
| Economies of Scale | as level of production increases, the average cost of each individual unit decreases |
| Market | interaction between buyers and sellers (supply and demand) |
| Macroeconomics | looks as economy as a whole and focuses of broad issues such as growth of production, unemployment, inflation, government deficits, exports/imports, national production (GDP |
| Microeconomics | focuses of the individual such as households, workers, businesses |
| Economic Theory | abstract representation of an object or situation that is simplified |
| Economic Model | applied or empirical representation (example: circular flow model) |
| Market economy | economic decisions are made by each individual and resources owned by individuals (80% of countries use this) |
| Command economy | economic decisions and resources are from government authority (North Korea, China, Cuba) |
| Traditional economy | agricultural economy (3% of countries) |
| Globalization | trend in which buying and selling in markets have increasingly crossed national borders |
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