Economics Flashcard 2 - GED

Front

What is the primary catalyst for industrial production?

Back

Capital is the primary catalyst for industrial production, as it includes the tools, machinery, and financial resources needed to produce goods.

Front

What term is used to describe the ability to produce wealth?

Back

Capitalism is the term used to describe the ability to produce wealth, emphasizing private ownership and the free market.

Front

What are incentives in the context of production?

Back

Incentives are anything that motivates economic behavior, such as profits, bonuses, or tax breaks.

Front

What is antitrust action?

Back

Antitrust action refers to legal measures taken to prevent monopolies and promote competition in the marketplace.

Front

What is opportunity cost?

Back

Opportunity cost is the value of the next best alternative that is forgone when making a decision.

Front

Define labor in economics.

Back

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

Front

What is the role of technology in production?

Back

Technology enhances production efficiency and can lead to the creation of new products and services.

Front

Explain the concept of supply and demand.

Back

Supply and demand are economic forces that determine the price of goods in a market; supply is how much of a product is available, and demand is how much consumers want it.

Front

What is a monopoly?

Back

A monopoly is a market structure where a single seller dominates the market, controlling prices and supply.

Front

What is the difference between microeconomics and macroeconomics?

Back

Microeconomics focuses on individual consumers and businesses, while macroeconomics looks at the economy as a whole.