General Knowledge
One word or less
Positive vs Normative
Graph it
Macro vs Micro
100
The study of how people allocate their limited resources to satisfy their unlimited wants.
What is economics?
100
What people would buy with unlimited income.
What are wants?
100
It is purely descriptive and based on facts that can be proved by evidence
What is positive economics?
100
Something that is subject to change.
What is a variable?
100
The study of the economy as a whole.
What is Macroeconomics?
200
A society's institutional mechanism for determining the way scarce recourses are used to satisfy humans desirers. Could be central, mixed, or market.
What is an economic system?
200
Things used to produce goods and services to satisfy peoples want.
What are resources?
200
It is subjective that is based on judgments and usually provides recommendation
What is normative economics?
200
Increase in one variable is associated with the decrees in the other.
What is an inverse relationship?
200
Deals with the decision of households and firms allocate resources of production, exchange, and consumption.
What is Microeconomics?
300
The assumption that people do not intentionally make decisions that would leave the worse off.
What is the rationality assumption?
300
A reward or penalty for participating.
What is an incentive?
300
Programs like welfare reduce peoples incentive to work.
What is an example of positive economics?
300
Relationship with variables is positive. Increase in one variable is associated with an increase in the other.
What is a direct relationship?
300
Managers make choices on how much product should be produced, how it is produced, and how much to pay the workers.
What is an example of Microeconomics?
400
The theory that people are not fully rational. They can not examine logically every possible outcome. Use simple rules of thumb.
What is bounded rationality?
400
Variables that measure the total economic activity for a nation state or a region. Example GDP
What is an aggregates?
400
Governments should tax the rich to help the poor.
What is an example of normative economics?
400
What is an invers relationship?
400
Involves behavioral economics for example: consumers will tend to buy fewer cars than before if a manufacturer raises the prices of cars.
What is an example of Microeconomics?
500
The assumption that nothing changes except the factor or factors being studied.
What is ceteris paribus?
500
Relies on real world data in evaluating the usefulness of a model.
What is empirical?
500
Higher education should be free.
What is an example of normative economics?
500
What is a direct relationship?
500
Deals with economic growth GDP, unemployment and inflation.
What is example of Macroeconomics?