Economics Ch 1 Test Questions – Flashcards
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Utility
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The pleasure, happiness, or satisfaction obtained from consuming a good of service
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Scarcity
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The economic resource needed to make goods amd sevices are in limited supply. This &@&& restricts options and demands choices
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Opportunity costs
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To obtain more of one thing, society fogoes the oppurtunitu of getting the next best thing.
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Marginal analysis
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Comparisons of marginal benefits and marginal costs usually for decison making
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Scientific method
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Similar to life and phsyical scientists- observations, hypothesizing, testing, accepting/rejecting/modifing hypothesis, continuing testing, forming an economic principal/theory
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Microeconomics
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The part of the economics concerned with decison making by individ. Customers, workers, households, and business firms.
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Macroeconomics
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Examines the overall performance and behavior of the economy as a whole.
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Economizing problem
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Tue need tp make chpices because exonomic wants exceed economic means- will enhance your enderstandong of econ models and the difference between micro and macro
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Limited income
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Everyone has a finite amount of income.
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Unlimited wants
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Eveyone virtually has unlimited wants and limited income not allowing this
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Economic resources
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Society has a limited amount of these. Include all nat, human and manufactured resources thay go jnto the production of goods and services
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Land
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To economists this means all natural resources
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Labor
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All physical actions and mental activities that people contribute to production
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Capital
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Includes all manufactured aids used in producing consumer goods and servicds
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Entrepreneurial ability
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Combine land, labor, and capital to produce a good or service
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Economic resources- land, labor, capital, and entrepreneurial ability
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Resource categories (four)
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Investment
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Spending yhay pays for the production and accumulation of capital goods
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Law of increasing opportunity costs
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As the productipn of a particular good increasesc the oppurtunitu cost of priducing an additional unit rises
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Positive economics
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Focuses on cause and effect relationships
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Economic growth is the result of
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Improvements in resource quality, technological advancements, increase in the supply of resources
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Capital goods
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Includes all manufactured AIDS used in producing consumer goods
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Economic principals
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The tendencies of typical or average consumers, workers of business firms
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Which of the following results from having scarce economic resources
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The production of limited goods and services
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Micro
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The discipline of economics concerned with individual units such as households firm and gov
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Aggregation
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Collection of specific economic units treated as if they were one unit
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Inputs
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Arable land, water, machinery, and a pro baseball player are all considered economic...
