Econ 204 Test 1

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  1. Economics
    The study of the choices people make to attain their goals, given their scarce resources.
  2. Macroeconomics
    the study of the economy as a whole, including topics such as inflation unemployment and economic growth
  3. Microeconomics
    the study of how households and firms make choices how they interact in the markets and now the government attempts to influence their choices
  4. Normative analysis
    analysis concerned with what ought to be
  5. Positive analysis
    analysis concerned with what is
  6. Market
    group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade
  7. Opportunity Cost
    the highest valued alternative that must be given up to engage in an activity
  8. Scarcity
    a situation in which unlimited wants exceed the limited resources available to fulfill those wants
  9. Economic model
    a simplified version of reality used to analyze real world economic situations
  10. Marginal analysis
    analysis that involves comparing marginal benefits and marginal costs
  11. Circular Flow Diagram
    a model that illustrates how participants in markets are linked
  12. Comparative advantage
    the ability of an individual a firm or country to produce a good or service at a lower opportunity cost than competitor
  13. Economic growth
    the ability of the economy to increase the production of goods and services
  14. Factors of productions
    the inputs used to make goods and services
  15. Production Possibilities Frontier 
    a curve showing the max attainable combinations of two products that may be produced with available resources and current technology
  16. Property Rights
    the rights individuals or firms have to the exclusive use of the their property including the right to buy or sell it.
  17. Unlimited Wants we have limited resources not really a need.
    • We have limited resources not really a need ¬†
    • TF Question
  18. Economics is a social science
    Study of human behavior.
  19. Oppurtunity Cost
  20. Which of the following involves valued judgments.
    Normative and Positive analysis
  21. Normative statement
    shouldve couldve wouldve is a normative statement
Card Set:
Econ 204 Test 1
2013-10-17 22:31:36
Economics Macroeconomics

Campbell University
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