Economics Flashcard

Front

What is the difference between Microeconomics and Macroeconomics?

Back

Microeconomics focuses on individual markets, while Macroeconomics looks at the economy as a whole.

Front

What are the factors of production?

Back

Land, labor, capital, and entrepreneurship.

Front

What is opportunity cost?

Back

The cost of the next best alternative foregone.

Front

What does a point of impossibility on a PPF curve represent?

Back

A point that cannot be achieved with current resources.

Front

What is a surplus in a supply and demand graph?

Back

When quantity supplied exceeds quantity demanded.

Front

What is the Circular Flow Model?

Back

A model that shows the flow of goods and services in an economy.

Front

What are the two equations for GDP?

Back

GDP = C + I + G + (X-M) and GDP = W + R + I + P.

Front

What are the three types of unemployment?

Back

Frictional, structural, and cyclical.

Front

What is the Phillips Curve?

Back

A curve that shows the inverse relationship between inflation and unemployment.

Front

What are the shifters of Aggregate Demand (AD)?

Back

Consumer spending, investment, government spending, and net exports.