Term
|
Definition
| Studies of choices we make in scarcity, limited resources are scarce |
|
|
Term
|
Definition
| The inablity to satisfy all our wants |
|
|
Term
| The ability of each of us to satisfy our wants is limited by time, income,and prices |
|
Definition
|
|
Term
|
Definition
| Objects and actions that people value and produce to satisfy human wants |
|
|
Term
|
Definition
|
|
Term
| The fact that a good is available in limited quantity doesn’t make it scarce but it must also be _____. |
|
Definition
|
|
Term
| A good is scarce if another unit of it would benefit someone is the test for ____? |
|
Definition
|
|
Term
| Study of how individuals or societies use scarce resources to produce the good and services and distribute them for consumption |
|
Definition
|
|
Term
| What are two branches of Economics |
|
Definition
|
|
Term
|
Definition
| studies the choices made by individuals, businesses, and the way they interact and are influenced by government; studying on a small scale |
|
|
Term
|
Definition
| study of the economy as a whole; studying on a larger scale |
|
|
Term
|
Definition
|
|
Term
| Example of a Normative Statement |
|
Definition
|
|
Term
|
Definition
| present the consequences of our alternative actions |
|
|
Term
| Does economics tell us what to choose? |
|
Definition
|
|
Term
|
Definition
| predicts the consequences of alternative actions/decisions by answering the question “what really is” or “what will be” |
|
|
Term
| This statement can be tested and it is based on facts |
|
Definition
|
|
Term
| You can do statistical analysis on this statment |
|
Definition
|
|
Term
|
Definition
| answers the question “what should be” |
|
|
Term
| Normative statement is based on what? |
|
Definition
|
|
Term
| This statement is not based on facts |
|
Definition
|
|
Term
| 3 most important economic questions |
|
Definition
1. What do I want to produce?
2. How will I produce?
3. Who consumes the goods and services? |
|
|
Term
|
Definition
| a certain type of assumption in economics |
|
|
Term
| “anything else remaining constant” or “ all other things being equal” or “ all other things remaining constant” |
|
Definition
|
|
Term
|
Definition
| a choice that uses the available resources to best achieve the objectives of the individual who makes it |
|
|
Term
Rational choices are made by looking at
___ and ___ |
|
Definition
|
|
Term
| Rational choices are made at the what? |
|
Definition
|
|
Term
|
Definition
| what you must give up to get something |
|
|
Term
|
Definition
| the action in the gain or the pleasure that it brings |
|
|
Term
|
Definition
| the additional cost resulting from a one unit change in the level of an activity |
|
|
Term
|
Definition
| the change in total benefit that result from a one-unit change in the level of activity |
|
|
Term
|
Definition
| the choices made that benefit an individual; choices that are best for the individual who makes them |
|
|
Term
|
Definition
| choices made that benefit a society or group of people; choices that are best for the society as a whole |
|
|
Term
| Does self-interest imply social interest |
|
Definition
|
|
Term
|
Definition
| a visual representation of 2 or more variables |
|
|
Term
|
Definition
| expresses the relationship between two or more variables |
|
|
Term
| What are 2 types of relationships between variables |
|
Definition
| Direct Relationships and Inverse Relationships |
|
|
Term
|
Definition
| 2 variables move in the same direction |
|
|
Term
|
Definition
| the 2 variables move in opposite directions |
|
|
Term
| What will happen if the Marginal Benefit = Marginal Cost |
|
Definition
| It will stay constant; meaning your doing your best |
|
|
Term
| A straight line on a graph is? |
|
Definition
|
|
