Economics Concepts

Front

Basic economic problem

Back

Scarcity

Front

Opportunity Cost

Back

Value of the next best alternative forgone

Front

Microeconomics vs Macroeconomics

Back

Micro: individual agents; Macro: whole economy

Front

Role of government in market economy

Back

Enforce property rights, regulate competition, provide public goods, address market failures, maintain economic stability.

Front

Factors of Production

Back

Land, Labor, Capital

Front

Inflation: rising prices, decreasing purchasing power

Back

Erodes money value, reduces consumer power, increases production costs, may raise interest rates.

Front

Supply and demand in economics

Back

Relationship between quantity supplied and quantity demanded at a given price.

Front

GDP Calculation

Back

Sum of consumption, investment, government spending, and net exports.

Front

Elasticity of demand

Back

Responsiveness of quantity demanded to price change

Front

Impact of Globalization on Economy

Back

Facilitates flow of goods, services, capital, technology; leads to growth, efficiency, new markets; causes income inequality, job displacement, vulnerability to shocks.