question
science of scarcity
answer
economics is the ___________________.
question
scarcity
answer
unlimited wants but limited resources
question
choices
answer
economics is the study of __________.
question
limited and desirable
answer
for something to be scarce it must be
question
positive economics
answer
questions that have a definite right and wrong answer
question
normative economics
answer
analysis that involves how the economy SHOULD work.
question
MB=MC
answer
you will continue to do something until__________.
question
trade offs
answer
all the alternatives that we give up whenever we choose one course of action over other.
question
opportunity cost
answer
The most desirable alternative given up as a result of a decision is known as_______________.
question
explicit costs
answer
out of pocket expense (often financial)
question
implicit costs
answer
value of resources that could be used elsewhere (often time)
question
shortages
answer
__________ occur when producers will not or cannot offer goods or services at current prices. they are temporary.
question
price
answer
Amount buyer (or consumer) pays
question
cost
answer
amount seller pays to produce a good
question
investment
answer
the money spent by businesses to improve their production
question
goods
answer
physical objects that satisfy needs and wants
question
consumer goods
answer
created for direct consumption (example: pizza)
question
capital goods
answer
reated for indirect consumption (oven, blenders, knives, etc.)
question
services
answer
actions or activities that one person performs for another
question
capital
answer
countries that produce more ________ goods will have more growth in the future
question
labor, land, capital, and entrepreneurship
answer
the four factors of production
question
PPC (PPF)
answer
a model that shows alternative ways that an economy can use its scarce resources...a simple economy
question
productive efficiency
answer
products are being produced in the least costly way. any point on the PPC
question
allocative efficiency
answer
products being produced are the ones most desired by society. optimal point on the PPC depends on the desires of society
question
shifter of PPC
answer
change in resource quantity or quality, change in technology, and change in trade
question
absolute advantage
answer
the producer that can produce the most output OR requires the least amount of inputs (resources)
who can do it the best?
who can do it the best?
question
comparative advantage
answer
the producer with the lowest opportunity cost.
who can do it by giving up the least?
who can do it by giving up the least?
question
opportunity cost
answer
Countries should trade if they have a relatively lower ____________.
question
cheaper
answer
Countries should specialize if it is ____________ for them to produce
question
(output) other goes over
answer
output questions
question
(input) other goes under
answer
input questions
question
economic questions
answer
what goods and services should be produced?
how should these goods and services be produced?
who consumes these goods and services?
how should these goods and services be produced?
who consumes these goods and services?
question
economic system
answer
method used by a society to produce and distribute goods and services.
question
traditional economy
answer
same roles throughout generations
question
centrally planned economy (communism)
answer
owns all the resources
answers the three economic questions
answers the three economic questions
question
free market economy (capitalism)
answer
little government involvement
(laissez faire = let it be)
individuals own resources and answer the three economic questions
competition and self-interest work together to regulate the economy (keep prices down and quality up).
(laissez faire = let it be)
individuals own resources and answer the three economic questions
competition and self-interest work together to regulate the economy (keep prices down and quality up).
question
the invisible hand
answer
the concept that society's goals will be met as individuals seek their own self-interest.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
