Economics as a Way of Thinking (Leaving Cert Economics): Flashcards
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Practise the cards
15 cards from this deck
Definition of economics
Definition of economics
Study of how individuals, businesses & govts make decisions about scarce resources to satisfy unlimited wants
Core economic problem
Core economic problem
Scarcity vs unlimited wants
Economic models
Economic models
Simplified frameworks to understand reality & economic relationships
Opportunity cost
Opportunity cost
Benefit of next best alternative forgone when making a choice
Elasticity
Elasticity
How responsive demand/supply is to price or income changes
Inflation
Inflation
Sustained rise in general price level of goods and services
Positive statements
Positive statements
Factual, objective, can be tested against evidence
Normative statements
Normative statements
Opinion-based value judgements that can't be proven true or false
Keynesian economics key belief
Keynesian economics key belief
Supports govt spending & intervention during recessions
Monetarist/Neoclassical economics belief
Monetarist/Neoclassical economics belief
Emphasises controlling inflation & limiting govt involvement
Behavioural economics focus
Behavioural economics focus
Psychological influences & irrational behaviour in decisions
Great Depression US unemployment rate
Great Depression US unemployment rate
Exceeded 25%
Great Recession Irish unemployment peak
Great Recession Irish unemployment peak
Approximately 15%
Irish 1950s economic solution
Irish 1950s economic solution
Trade liberalisation & encouraging foreign investment
Main Irish economic data source
Main Irish economic data source
CSO (Central Statistics Office)