Economics Chapter 1

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  1. What three issues must be resolved in Economics?
    What, how, and for whom.
  2. The lack of enough resources to satisfy desired uses of those resources?
  3. Resource inputs used to produce goods and services?
    Factors of production
  4. The most desired goods or services that are foregone in order to obtain something.
    Oppurtunity Cost
  5. The alternative combinations of goods/services that could be produced in a given period of time with all available resources and technology?
    Production possibilities
  6. Increasing quantities of any good can be produced only by sacrificing ever increasing quantities of other goods?
    Law of increasing costs.
  7. Getting the maximum ouptut of a good from the resources used in production?
  8. Two conditions that may cause a country to end up inside the PPC.
    Inefficiency and unemployment
  9. An increase in output (real GDP)
    Economic Growths
  10. The use of market prices and sales to signal desired outputs?
    Marker Mechanism
  11. Moves through the market to stabilize it?
    The Invisible Hand
  12. Who argued for command economics and government ownership?
    Karl Marx
  13. Who offered a less severe theory of government internevtion?
    John Mayhand
  14. Who proposed a laissez-faire theory of economics?
    Adam Smith
  15. Uses both market signals and government intervetntion?
    Mixed Economy.
  16. Occurs when the market does not return to equilibrium?
    Market Failure
  17. Occurs when the government intervetnion fails oto correct the market?
    Government Failure
  18. The study of the economy as a whole?
  19. The study of individual behavior in the economy?
  20. True or false: Many things can change at one time?
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Economics Chapter 1
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