Questions and Answers
What is the definition of efficiency?
What does freedom in an economic context refer to?
Freedom from government intervention in the production and distribution of goods and services.
What percentage of unemployment is considered full employment in the US?
Under 4%
What does equity mean in economic terms?
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What does security and predictability refer to in an economic context?
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How is economic growth measured?
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What does stability in an economy refer to?
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Study Notes
Economic Goals
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Efficiency: Maximizing the use of resources to achieve optimal outcomes in production and consumption.
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Freedom: Individuals have the autonomy to make choices regarding their work, occupations, and businesses govern their production, hiring, and pricing decisions without government interference.
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Full Employment: Target of under 4% unemployment in the U.S. indicates that almost everyone ready, willing, and able to work can find employment.
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Equity: Emphasizes a fair distribution of wealth among the population to reduce disparities and promote social justice.
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Security and Predictability: Focuses on ensuring the consistent availability of goods and services alongside a safety net, which offers protection against economic uncertainties.
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Growth and Innovation: Economic growth is closely tied to innovation, which results in improved living standards. Economic growth is often assessed using Gross Domestic Product (GDP).
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Stability: A stable economy experiences consistent business cycles with predictable patterns, minimizing fluctuations and providing confidence in the economic environment.
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Description
Test your knowledge of the seven economic goals with these flashcards. Each card presents key terms and their definitions, helping you understand concepts such as efficiency, freedom, and full employment. Perfect for students of economics or anyone interested in understanding economic principles.
