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Introductory Economics and Social Science Concepts
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1
Question
What is social sciences as defined in Unit 1 Chapter 1 and 2?
Answer
A field examining interactions between humans, institutions, organizations, and the social environment.
2
Question
What is empirical data?
Answer
Information obtained by scientists through experimentation and observation.
3
Question
What is Universal Basic Income (UBI)?
Answer
Direct cash payments to citizens as poverty relief.
4
Question
What does provision mean in economic terms?
Answer
The action of providing or supplying something for use.
5
Question
How is labour described in the material?
Answer
Work, especially hard physical work.
6
Question
What does 'supply' mean?
Answer
To make available for use.
7
Question
How is demand defined in economics?
Answer
The quantity of a good that consumers are willing and able to purchase at various prices during a given time.
8
Question
What is the equilibrium price?
Answer
The market price where quantity supplied equals quantity demanded.
9
Question
What characterizes a free market?
Answer
Prices determined by unrestricted competition between privately owned businesses.
10
Question
What is monetary policy intended to do?
Answer
Control the money supply and promote economic growth.
11
Question
What is resource allocation?
Answer
The assignment of available resources to various uses.
12
Question
What is market failure?
Answer
When supply and demand fail to balance, leading to inefficient distribution of goods and services.
13
Question
What are demerit goods?
Answer
Goods with harmful effects on society, like pollution and tobacco.
14
Question
What are merit goods?
Answer
Goods with positive effects on society, such as education; underproduced due to externalities.
15
Question
What is the price system?
Answer
An economic mechanism that assigns values (prices) to goods and services to allocate resources.
16
Question
What are property rights?
Answer
Laws specifying the legal ownership of property and how it can be used.
17
Question
What does surplus mean in economics?
Answer
An amount of resources/assets exceeding actual use.
18
Question
What does full employment level of output refer to?
Answer
The level of output where all available resources are utilized.
19
Question
How is unemployment related to economic concepts in the notes?
Answer
Unemployment is the condition when not all resources are fully used; linked to growth, recession.
20
Question
What is economic growth?
Answer
An increase in a nation’s total output over time.
21
Question
What is a recession as defined here?
Answer
A period when levels of output fall below the full employment level.
22
Question
What are leakages in an economic system?
Answer
Money that exits the spending stream.
23
Question
What is import expenditure?
Answer
Expenditure on imported goods and services.
24
Question
What are injections in an economy?
Answer
Money that enters the spending stream from outside the circular flow.
25
Question
What is export revenue?
Answer
Income earned from selling domestically produced goods abroad.
26
Question
What is a product market?
Answer
A market where goods and services are bought and sold.
27
Question
What is a resource market?
Answer
A market for the factors of production (land, labor, capital, entrepreneurship).