HONORS MICROECONOMICS LESSONS 1-3

question

scarcity

answer

having a limited quantity of resources to meet unlimited wants

question

opportunity cost

answer

the highest valued alternative that must be given up to engage in an activity

question

economic way of thinking

answer

A way of looking at, and analyzing, the way the world works by comparing the costs of an action with the benefits generated.

question

TINSTAAFL

answer

There Is No Such Thing As A Free Lunch

question

normative economics

answer

analysis that prescribes what an individual or society ought to do

question

positive economics

answer

A way of describing and explaining economics as it is, not as it should be.

question

economic incentives

answer

economists assume that the only reason people take the actions they do is in response to this

question

economic systems

answer

The methods societies use to distribute resources

question

voluntary trade

answer

The act of buyers and sellers freely and willingly engaged in trade.

question

marginal thinking

answer

evaluate whether the benefit of one more unit of something is greater than the cost

question

marginal costs

answer

the extra cost of producing one more unit of output

question

marginal benefits

answer

measures the advantages of producing one additional unit of a good or service.

question

goods

answer

Physical objects such as clothes or shoes

question

services

answer

activities that are consumed at the same time they are produced

question

secondary effects

answer

any unintended consequence of an economic decision

question

trade-offs

answer

Alternative choices

question

explicit costs

answer

costs that require a firm to spend money

question

implicit costs

answer

the value of economic resources that could be used elsewhere

question

absolute advantage

answer

What a person, group, business or country can do better than anyone else.

question

comparative advantage

answer

The advantage a person, nation, etc. has by producing an item at a lower opportunity cost than another person or nation.

question

specialization

answer

the development of skills in a specific kind of work

question

exchange

answer

The process of trading one good/service for another

question

input method

answer

provides data on the amount of resources needed to produce one unit of output

question

output method

answer

gives data on the amount of output that can be produced with a given amount of an input

1 of 24

question

scarcity

answer

having a limited quantity of resources to meet unlimited wants

question

opportunity cost

answer

the highest valued alternative that must be given up to engage in an activity

question

economic way of thinking

answer

A way of looking at, and analyzing, the way the world works by comparing the costs of an action with the benefits generated.

question

TINSTAAFL

answer

There Is No Such Thing As A Free Lunch

question

normative economics

answer

analysis that prescribes what an individual or society ought to do

question

positive economics

answer

A way of describing and explaining economics as it is, not as it should be.

question

economic incentives

answer

economists assume that the only reason people take the actions they do is in response to this

question

economic systems

answer

The methods societies use to distribute resources

question

voluntary trade

answer

The act of buyers and sellers freely and willingly engaged in trade.

question

marginal thinking

answer

evaluate whether the benefit of one more unit of something is greater than the cost

question

marginal costs

answer

the extra cost of producing one more unit of output

question

marginal benefits

answer

measures the advantages of producing one additional unit of a good or service.

question

goods

answer

Physical objects such as clothes or shoes

question

services

answer

activities that are consumed at the same time they are produced

question

secondary effects

answer

any unintended consequence of an economic decision

question

trade-offs

answer

Alternative choices

question

explicit costs

answer

costs that require a firm to spend money

question

implicit costs

answer

the value of economic resources that could be used elsewhere

question

absolute advantage

answer

What a person, group, business or country can do better than anyone else.

question

comparative advantage

answer

The advantage a person, nation, etc. has by producing an item at a lower opportunity cost than another person or nation.

question

specialization

answer

the development of skills in a specific kind of work

question

exchange

answer

The process of trading one good/service for another

question

input method

answer

provides data on the amount of resources needed to produce one unit of output

question

output method

answer

gives data on the amount of output that can be produced with a given amount of an input

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