Podcast
Questions and Answers
In countries like ___ the command economy predominates.
In countries like ___ the command economy predominates.
Cuba and North Korea
In a command economy the ___ either makes most economic decisions itself or at least strongly influences how the decisions are made.
In a command economy the ___ either makes most economic decisions itself or at least strongly influences how the decisions are made.
government
Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?
Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?
- Domestic production
- Foreign investment
- International trade (correct)
- Labor force size
In a ___ most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers & sellers.
In a ___ most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers & sellers.
Which of the following is generally accepted as valid criticism of the production of useful goods & services?
Which of the following is generally accepted as valid criticism of the production of useful goods & services?
In the first chapter of 'The Wealth of Nations', Smith introduces the idea of the ___ which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
In the first chapter of 'The Wealth of Nations', Smith introduces the idea of the ___ which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
If macroeconomics looks at the economy as a whole, it focuses on which of the following?
If macroeconomics looks at the economy as a whole, it focuses on which of the following?
In the ___ households work & receive payment from firms.
In the ___ households work & receive payment from firms.
In the ___ households receive goods & services & pay firms for them.
In the ___ households receive goods & services & pay firms for them.
Which of the following best describes a monetary policy tool?
Which of the following best describes a monetary policy tool?
Which of the following best describes a fiscal policy tool?
Which of the following best describes a fiscal policy tool?
When nations desire a healthy macroeconomy, they typically focus on three goals: one of them being?
When nations desire a healthy macroeconomy, they typically focus on three goals: one of them being?
What is the basic difference between macroeconomics and microeconomics?
What is the basic difference between macroeconomics and microeconomics?
Which of the following is most likely a topic of discussion in macroeconomics?
Which of the following is most likely a topic of discussion in macroeconomics?
Which of the following statements most likely lies within the realm of microeconomics?
Which of the following statements most likely lies within the realm of microeconomics?
What does specialization lead to?
What does specialization lead to?
In a market-oriented economy the amount of a good that is produced is primarily decided by the interaction of?
In a market-oriented economy the amount of a good that is produced is primarily decided by the interaction of?
What does the circular flow diagram of economic activity model?
What does the circular flow diagram of economic activity model?
_____ - a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines.
_____ - a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines.
Economic models like the ___ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.
Economic models like the ___ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.
What does the term 'division of labor' refer to?
What does the term 'division of labor' refer to?
What does specialization allow workers to do?
What does specialization allow workers to do?
What are economies of scale?
What are economies of scale?
What is a market?
What is a market?
What is economic theory?
What is economic theory?
What does the circular flow diagram show?
What does the circular flow diagram show?
A ______ is typically an agricultural economy where things are done the same as they have always been done.
A ______ is typically an agricultural economy where things are done the same as they have always been done.
A ______ is an economy where economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand.
A ______ is an economy where economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand.
Study Notes
Economic Systems and Structures
- Command Economy: Predominates in countries like Cuba and North Korea where the government makes most economic decisions.
- Market-Oriented Economy: Economic decisions about production are made through the interactions of buyers and sellers, promoting decentralized decision-making.
Economic Interaction and Specialization
- International Trade: Crucial for smaller economies like Belgium, Korea, and Canada to maximize specialization benefits.
- Division of Labor: Introduced by Adam Smith, it entails dividing the production process into distinct tasks performed by different workers, enhancing efficiency.
Markets and Economic Models
- Labor Market: The arena in which households work and receive payments from firms.
- Goods & Services Market: Where households purchase goods and services from firms, contributing to the overall economy.
- Circular Flow Diagram: A visual model depicting the flows of goods, services, and payments between households and firms, illustrating economic activity.
- Economics of Scale: A principle stating that as production levels increase, the average cost per unit typically decreases.
Economic Policies and Goals
- Monetary Policy Tool: Primarily involves interest rates to influence the economy.
- Fiscal Policy Tool: Centered on government spending as a means to affect economic conditions.
- Macroeconomic Goals: Nations typically aim for low inflation, alongside full employment and economic growth.
Microeconomics vs. Macroeconomics
- Microeconomics: Focuses on individual consumer and firm behavior, such as how a rise in labor costs affects production costs.
- Macroeconomics: Considers the economy as a whole, addressing issues like unemployment rates and overall economic performance.
Specialization's Impact
- Specialization: Enhances overall production efficiency as workers concentrate on tasks where they exhibit advantages, increasing speed and quality.
Economic Concepts
- Market: Defined as the interaction between potential buyers and sellers that facilitates trade.
- Traditional Economy: Largely agricultural, relies on historical methods and practices for production.
- Market Economy: Characterized by decentralized economic decision-making, with private ownership of resources and supply of goods driven by demand.
- Economic Theory: Simplified representations that retain essential features for understanding complex economic situations.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore core concepts of command economies through these flashcards. Test your knowledge about the influence of government and economic systems in various countries. A great way to reinforce your understanding of economic principles.
