AP Notes, Outlines, Study Guides, Vocabulary, Practice Exams and more!

Economics Flashcards

Terms : Hide Images
3300647608scarcityScarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs.0
3300699128What Is Economics?"Economics is the study of how individuals and groups make decisions with limited resources as to best satisfy their wants, needs, and desires."1
3300721001What is Microeconomics?microeconomics deals with economic decisions made at a low or micro level.2
3300760529What is Macroeconomics?The study of macroeconomics deals with the sum total of the decisions made by individuals in a society or nation such as "how does a change in interest rates influence national savings?3
3302544566Self-interestSelf-interest is when individuals make decisions that are in their own best interest. Like when you decide to get up in the morning to go to work and make money, or when you pay the grocery store for food that you would like to eat4
3302552654Social interestis when choices are made that benefit society as a whole. Imagine one person, who is all knowing and really cares about the people. Every action this benevolent dictator made would be in the social interest of the society. The cool thing about social interest is that it can also be attained by individual decision makers acting in their own self-interest. This process is what Adam smith called the invisible hand.5
3302579114Adam Smithis often touted as the world's first free-market capitalist. While that designation is probably a bit overstated, Smith's place in history as the father of modern economics and a major proponent of laissez-faire economic policies is quite secure. Read on to learn about how this Scottish philosopher argued against mercantilism to become the father of modern free trade.6
3302893577GlobalizationWhen people and organizations around the world begin to connect through business, economics, and social issues7
3303006393information revolution (sometimes called also the "informational revolution")describes current economic, social and technological trends beyond the Industrial Revolution. Many competing terms have been proposed that focus on different aspects of this societal development. The British polymath crystallographer J. D. Bernal introduced the term "scientific and technical revolution" in his 1939 book The Social Function of Science to describe the new role that science and technology are coming to play within society8
3303039160Climate changeis a change in the statistical distribution of weather patterns when that change lasts for an extended period of time (i.e., decades to millions of years). Climate change may refer to a change in average weather conditions, or in the time variation of weather around longer-term average conditions (i.e., more or fewer extreme weather events). Climate change is caused by factors such as biotic processes, variations in solar radiation received by Earth, plate tectonics, and volcanic eruptions.9
3303114002negative balanceis a government budget deficit and debt10
3303691413MonopolyWhen only one company has control of the market11
3303701700The 5 Economic NeedsFood, Shelter, Clothes, Warmth, and Water12
3303790637scarcity-forces-tradeoffs principlelimited resources force people to make choices and face tradeoffs when they choose.13
3303798518marginal benefitwhat you gain by adding one more unit14
3303808959economic modela simplified representation of reality that allows economists to focus on the effects of one change at a time15
3303819971tradeoffthe exchange of one benefit or advantage for another that is thought to be better.16
3303830163invisible handAdam Smith's metaphor to explain how an individual's pursuit of economic self-interest can promote the well-being of society as a whole17
3303843016incentivebenefit offered to encourage people to act in a certain way18
3303850082opportunity costthe value of something that is given up by choosing one alternative over another19
3303866206The Seven PrinciplesEconomic ways of thinking including scarcity, tradeoffs, cost/benefits, and thinking at the margin20
3303896052 Ceteris paribusA Latin phrase that means while certain variables change, "all other things remain unchanged."21
3303963677What is considered a positive relationship?Two variables have a positive relationship when an increase in the value of one variable is associated with an increase in the value of another variable It is illustrated by a curve that slopes upward The supply curve is an example of a positive relationship (positive relationship between price and quantity. As the price increases the quantity available increases)22
3303976337variables have a linear relationshiptype of relationship do the variables have if the curve is a straight line?23
3303988580variables have a non-linear relationshiprelationship do the variables have if the curve is not a straight line24
3341616094Economic SystemThe method used by a society to produce and distribute goods and services.25
3341643206Patriotism The love of one's country; the passion that inspires a person to serve his or her country.26
3341650738Market EconomyAn economic system where decisions about production, price and other economic factors are all determined by the law of supply and demand.27
3341658885IncentiveAn expectation or reward that encourages people to behave in a certain way.28
3341672397Scarcitywhen there is not enough of something to satisfy how much everyone wants of it.29
3341678594Trade-offsthe alternative choices people face in making an economic decision30
3341696732Opportunity Costthe cost of the next best alternative among a person's choices-the time, money, or resources that are given up or sacrificed to make the final choice31
3341704709Three Economic QuestionsWhat goods and services should be produced? How these goods and services should be produced? For whom should these goods and services be produced?32
3341727858law of supplystates that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases (when the price goes down so does the amount made; when the price goes up so does the amount made)33
3342042818entrepreneursomeone who organizes a business venture and assumes the risk for it34
3342048385private propertyproperty owned by individuals or companies, not by the government or the people as a whole35
3342055254natural resourcesresources (actual and potential) supplied by nature36
3342067038capital resourcesThe tools, equipment, and buildings that are used to produce goods and services37
3342102189embargoa government order imposing a trade barrier; a limit or ban on trade38
3342976946Factors of productionLand, labor, and capital; the three groups of resources that are used to make all goods and services39
3343000683MacroeconomicsThe study of the performance of the national economy and the global economy40
3343007324MicroeconomicsThe study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments41
3343021569The Invisible HandThe price mechanism, the rise and fall of prices that guides our actions in a market.42
3343059353elasticity of demand for exportsa measure of the responsiveness of the quantity demanded of exports when there is a change in the relative price of exports43
3343121213inelastic demandquantity is insensitive to a change in price44
3343145931total revenueTells you what happens to total revenue when there is a change in price45
3343198047Cross elasticity of demandMeasures the responsiveness of the quantity demanded of a product when their is a change in price of another product XED = % change in quantity demanded of Good X" ---------------------------------------------------------------- % change in price of good "Y"46
3343221391Cross Elasticity related to?Any Product related to each other47
3343240436SubstitutesEcross is a positive coefficient48
3343245778ComplementEcross is a negative coefficient.49

Need Help?

We hope your visit has been a productive one. If you're having any problems, or would like to give some feedback, we'd love to hear from you.

For general help, questions, and suggestions, try our dedicated support forums.

If you need to contact the Course-Notes.Org web experience team, please use our contact form.

Need Notes?

While we strive to provide the most comprehensive notes for as many high school textbooks as possible, there are certainly going to be some that we miss. Drop us a note and let us know which textbooks you need. Be sure to include which edition of the textbook you are using! If we see enough demand, we'll do whatever we can to get those notes up on the site for you!