Economics Flashcard

Front

What is the term for the study of the economy as a whole, including topics like inflation and unemployment?

Back

Macroeconomics

Front

Who is known for the concept of the "Invisible Hand" in economics?

Back

Adam Smith

Front

What is the economic term for the next best alternative foregone when a decision is made?

Back

Opportunity Cost

Front

Which economic system is characterized by private ownership and free markets?

Back

Pure Market Economy (Capitalism)

Front

What is the term for the ability of an economy to produce more goods and services over time?

Back

Productivity

Front

Identify the difference between needs and wants for individuals.

Back

Needs are essential for survival, while wants are additional desires.

Front

Based on the production possibilities table, which production combination is possible? Options: 28 pizzas and 5 pairs of shoes, 3 pairs of shoes and 23 pizzas, 2 pairs of shoes and 20 pizzas, 4 pairs of shoes and 15 pizzas

Back

2 pairs of shoes and 20 pizzas

Front

How does cost-benefit analysis impact choices we make in purchases?

Back

It allows us to evaluate the benefits against the costs.

Front

What are incentives and why do they matter?

Back

Incentives are rewards or punishments; they encourage specific behaviors.

Front

Which type of money is the US dollar?

Back

Fiat money