Econ 101
The study of how people make choices to satisfy unlimited wants with limited resources.
What is Economics?
Thinking about the additional cost or benefit of one more unit.
What is marginal analysis?
The four factors of production are land, labor, capital, and this.
What is entrepreneurship?
An economy based on customs and traditions.
What is a traditional economy?
Something that motivates people to act in a certain way.
What is an incentive?
The problem that resources are limited but wants are unlimited.
What is scarcity?
A rational decision-maker will act only if the marginal benefit is greater than this.
What is marginal cost?
This factor includes natural resources like oil, water, and farmland.
What is land?
An economy where government makes all production decisions.
What is a command economy?
Higher wages are an example of this type of incentive.
What is a monetary incentive?
The next best alternative that you give up when making a decision.
What is opportunity cost?
If the marginal cost of studying one more hour exceeds the marginal benefit, you should do this.
What is stop studying?
A worker's skills, knowledge, and education are part of this type of capital.
What is human capital?
An economy based mostly on supply and demand with little government interference.
What is a market economy?
These incentives encourage behaviors by rewarding positive actions.
What are positive incentives?
Tools, machinery, and factories used to produce goods are examples of this.
What is capital?
Businesses use marginal thinking to determine how much of this to produce.
What is output?
This person organizes the other factors of production and takes risks to start a business.
Who is an entrepreneur?
The United States has this type of economy, combining market and government elements.
What is a mixed economy?
Fines and penalties are examples of these.
What are negative incentives?
This economic principle states that as the price of a good rises, the quantity demanded falls.
What is the law of demand?
The concept of diminishing returns occurs when each additional input adds less of this.
What is additional output?
Rent, wages, interest, and profit are the forms of these payments.
What are returns to the factors of production?
In a command economy, this entity owns most of the resources.
What is the government?
Businesses respond to profit incentives by doing this.
What is increasing production or innovation?