Econ 204 Test 1
Card Set Information
Econ 204 Test 1
The study of the choices people make to attain their goals, given their scarce resources.
the study of the economy as a whole, including topics such as inflation unemployment and economic growth
the study of how households and firms make choices how they interact in the markets and now the government attempts to influence their choices
analysis concerned with what ought to be
analysis concerned with what is
group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade
the highest valued alternative that must be given up to engage in an activity
a situation in which unlimited wants exceed the limited resources available to fulfill those wants
a simplified version of reality used to analyze real world economic situations
analysis that involves comparing marginal benefits and marginal costs
Circular Flow Diagram
a model that illustrates how participants in markets are linked
the ability of an individual a firm or country to produce a good or service at a lower opportunity cost than competitor
the ability of the economy to increase the production of goods and services
Factors of productions
the inputs used to make goods and services
Production Possibilities Frontier
a curve showing the max attainable combinations of two products that may be produced with available resources and current technology
the rights individuals or firms have to the exclusive use of the their property including the right to buy or sell it.
Unlimited Wants we have limited resources not really a need.
We have limited resources not really a need
Economics is a social science
Study of human behavior.
Which of the following involves valued judgments.
Normative and Positive analysis
shouldve couldve wouldve is a normative statement