Flashcard: Fundamentals of Economics and Market Dynamics — 24 carte

Money — functions?

Medium of exchange, unit of account, store of value.

Economics — focus?

Resource allocation and decision-making.

Money in microeconomics?

Analyzes prices, demand, and supply decisions.

Economics — dependence?

Depends on money for measuring value.

Production Possibility Curve?

Graph showing trade-offs and efficiency.

Trade-offs — concept?

Producing more of one good reduces another.

Efficiency — on PPC?

Maximum output with available resources.

Maximum output?

Points on the PPC.

Feasible production?

Inside or on the PPC.

Outside the curve?

Unattainable with current resources.

Opportunity Cost?

Value of next best alternative foregone.

Scope of Economics?

Microeconomics and macroeconomics.

Microeconomics?

Studies individual agents and markets.

Macroeconomics?

Analyzes economy-wide phenomena.

Factors of Production?

Land, labor, capital, entrepreneurship.

Mixed Economy?

Combines private enterprise and government intervention.

Positive statements?

Factual, testable, describe reality.

Normative statements?

Value-based, express opinions.

Market Demand Curve?

Shows total demand at each price.

Demand curve slope?

Downward, law of demand.

Excess Supply?

Surplus when supply exceeds demand.

Market mechanism?

Prices adjust to restore equilibrium.

Supply & excess?

Surplus causes prices to fall.

Key to resource allocation?

Money and factors of production.