EOC Economics Flashcards
6 cards from real EOC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 EOC Economics flashcards as text
What is 'comparative advantage' in international trade?
Answer: Producing a good at a lower opportunity cost than another country
Comparative advantage means a country can produce a good at a lower opportunity cost relative to another country, making specialization and trade mutually beneficial.
What economic concept explains why people must make choices due to unlimited wants and limited resources?
Answer: Scarcity
Scarcity is the fundamental economic problem that arises because human wants are unlimited while the resources available to satisfy them are finite.
What is the difference between a 'recession' and a 'depression'?
Answer: A depression is longer and more severe than a recession
A recession is defined as two or more consecutive quarters of negative GDP growth, while a depression is a far more severe and prolonged economic downturn.
Which factor of production refers to the human effort used to produce goods and services?
Answer: Labor
Labor is the human effort — both physical and mental — that goes into producing goods and services, and it is one of the four classical factors of production.
What is a 'tariff' in the context of international trade?
Answer: A tax on imported goods
A tariff is a tax imposed by a government on goods imported from other countries, typically used to protect domestic industries or raise government revenue.
What does it mean when a government runs a 'budget deficit'?
Answer: It spends more money than it collects in revenue
A budget deficit occurs when a government's expenditures exceed its revenues during a given fiscal period, requiring borrowing to cover the gap.