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  1. _____________ is the fundamental economic problem that human wants exceed the availability of time, goods and resources.
  2. _____________ is the study of how individuals and society choose to allocate scarce resources to satisfy unlimited wants.
  3. Factors of production classified as: land, labor, and capital are also called ______________
  4. _____________________ applies an economy wide perspective, which focuses on such issues as inflation, unemployment, and the growth rate of the economy
  5. ____________ examines small units of an economy, analyzing individual markets such as the market for personal computers.
  6. A simplified description of reality used to understand and predict economic events is called a (an) ______________________.
  7. If the ___________  assumption is violated, a model cannot be tested.
    ceteris paribus
  8. ______________________ uses testable statements.
    Positive Economics
  9. __________________ is a shorthand expression for any natural resource provided by nature.
  10. The physical plants, machinery, and equipment used to produce other goods. Capital goods are man-made goods that do not directly satisfy human wants is ______________________.
  11. The mental and physical capacity of workers to produce goods and services is ____________
  12. _________________ is the creative ability of individuals to seek profits by combining resources to produce innovative products.
  13. ___________________ is an analysis based on value judgement
    Normative Economics
  14. The ___________ problem concerns the division of output among society's citizens.
    The ____________ question asks exactly which goods are to be produced and in what quantities. The __________ question requires society to decide the resource mix used to produce goods.
    • for whom
    • what
    • how
  15. ____________ is the best alternative forgone for a chosen option.
    opportunity costs
  16. The basic approach that compares additional benefits of a change against the additional costs if the change is called ____________.
    marginal analysis
  17. The ________________ represents that maximum possible combinations of two outputs that can be produced in a given period of time inefficient production occurs at any point inside the curve and all points along the curve are efficient points
    Production possibilities curve
  18. The _______________ states that the opportunity cost increases as production of an output expands.
    Law of increasing opportunity costs
  19. _______________ occurs when the production possibilities curve shifts outward as the result of changes in the resource base or advance in technology.
    Economic growth
  20. Factories, equipment, and inventories produced in the present are called ____________ which can be used to shift the production possibilities curve outward in the future.
  21. the body of the knowledge and skills applied to how goods are produced is ____________.
  22. The ____________ states that there is an inverse relationship between the price and the quantity demanded, ceteris paribus.
    Law of demand
  23. A movement along a stationary demand curve caused by a change in price is called a (an) __________________.
    change in quantity demand
  24. When the price of a good is greater than the equilibrium price, there is an excess quantity supplied called a (an) ________________.
  25. The unique price and quantity established at the intersection of the suppl and demand curves is called ______________.
  26. The ______________ is the supply and demand mechanism which  establishes  equilibrium through the ability of prices to rise and fall.
    price system
  27. A (an) _____________ is one that there is an inverse relationship between changes in income and its demand curve.
    inferior good
  28. A (an) ____________ is one that competes with another good for consumer purchases. As a result, there is a direct relationship between a price change for one good and the demand for its "competitor" good.
    substitute good
  29. The principle that there is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus, is the _____________
    law of supply
  30. A (an) __________ is any arrangement in which buyers and sellers interact to determine the price and quantity of goods and services exchanged
Card Set:
2015-06-14 15:22:45
Land Capital Labor

Chapters 1,2,3
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