Flashcard: Fundamentals of Economics and International Finance — 16 carte

Needs — definition?

States of dissatisfaction motivating pursuit of goods.

Goods — definition?

Items capable of satisfying needs.

Scarcity — role?

Creates resource limitations, necessitating choices.

Resources — function?

Inputs used to produce goods/services.

Opportunity Cost — meaning?

Value of next best alternative foregone.

Economic Efficiency — goal?

Maximize output and satisfaction with limited resources.

Mercantilism — focus?

Accumulating gold through trade surplus and protectionism.

Physiocracy — main idea?

Land is primary wealth source, favoring agriculture.

Classical Economics — key advocate?

Adam Smith, emphasizing free markets.

Neoclassical Economics — focus?

Marginal utility and individual optimization.

Marxism — critique?

Capitalism exploits labor, leading to crises.

Keynesian Economics — emphasis?

Demand management and government intervention.

Microeconomics — study of?

Individual agents' behaviors and decisions.

Macroeconomics — study of?

Aggregate economy-wide variables.

GDP — definition?

Total value of final goods/services produced domestically.

Balance of Payments — purpose?

Records international transactions over time.