Flashcards on Foundational Economic Concepts
Foundational Economic Concepts: A Student's Comprehensive Guide
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Economics
19 cards
Card 1
Question: What is an economy?
Answer: A system that coordinates productive activities to produce and distribute goods and services.
Card 2
Question: What important decisions does an economy make?
Answer: Which resources will be used, how they will be used, who makes decisions, and who benefits from the resources.
Card 3
Question: What are households in the economy?
Answer: Individuals or families who consume goods and services and provide resources such as labor.
Card 4
Question: Name four sources of household income.
Answer: Wages/salaries, interest, rent, and profits/dividends.
Card 5
Question: What does the government do in the economic flow?
Answer: It collects taxes and provides public goods and services; it participates in the continuous flow of money and resources between households and busines
Card 6
Question: What is disposable income according to the content?
Answer: (Note: the content mentions 'Disposable Income' but does not provide a further definition.)
Card 7
Question: What is a salary and how is it typically paid?
Answer: Payment for work, usually monthly; a fixed annual amount divided into monthly payments and not directly linked to production.
Card 8
Question: What is a wage and what types are there?
Answer: Payment for work, usually weekly; common in manual labor jobs; can include time rate or piece rate and may include overtime.
Card 9
Question: Define specialization and division of labor.
Answer: Specialization: people or businesses focus on what they do best. Division of labor: production is divided into tasks, and each worker performs one tas
Card 10
Question: List two advantages and two disadvantages of the division of labor.
Answer: Advantages: greater efficiency and higher productivity/output. Disadvantages: workers can become bored and lack of flexibility if a worker is absent.