Global Economy

Card Set Information

Global Economy
2013-04-19 02:07:53

Questions for my economics test
Show Answers:

  1. what are the two branches of economics
    Macroeconomics and Microeconomics
  2. What is the Economics formula:
    Businesses and government generates: production, income, employment Expenditure examples: buying/selling,trading,production
  3. What are Econimic Basic
    Need and Wants
  4. What is needs
    Things that are essential for survival: food, water, clothing shelter etc.
  5. What is wants
    A want: something we would like to have, but we can survive without
  6. What are the economic Resources
    Land, Labour, Capital and Enterprice
  7. What is land:
    Any naturally occurring materials, called raw materials
  8. Example of land:
    Minerals, gold, animal, wheat
  9. What is Labour?
    When a person works, they are using their labour rsources
  10. what is a capital resource?
    Man made resources
  11. Examples of capital resources
    Factories, machines, tool, computer that helps labour increase in production
  12. What is enterprice?
    The skill combining the factors of production also known as entreprenuers
  13. Example of Enterprice:
    Etreprenuers: Bill Gates, Dick Smiths Steve Jobs
  14. What is scarcity?
    Scarcity, the basic economic problem. Knowing what we cant have everything and so we must choose between competing alternative
  15. The scarcity diagram:
    • unlimited wants-->
    • limited resources-->economical choices
  16. What is opportunity cost?
    The ability to make choices without scare resources.
  17. The value of opportunity cost
    The value of the second choice. It is the opportunity that you "gave up" in order to have the opinion that considered to be the most desirable.
  18. PPC or PPF as a graph
  19. Why economic system?
    Nations use economic systems to determine how to use their limited resources effectively to provide people minimum standard of living
  20. Different types of economic systems
    • Traditional economy
    • Market economy (unplanned)
    • Command economy (planned)
  21. Traditional economy:
    Fund in rural, under-developed countries

    Pygmies of congo, eskimos and indian tribe, Australian aborigines 

    • -customs/rituals govern economic decisions
    • -no commercial activity
    • -resources are used to meet basic needs
  22. The advantages and disadvantages
    Advantage: People have specific roles, life is simple

    Disadvantages: Technology not used, new ideas discouraged, standard of living never change.
  23. what is Command economy (unplanned)
    Governments determines what, how and for whom goods and services are produced