section 1
Define both positive and normative economics
Positive economics focuses on describing economic facts while Normative economics focuses on value judgments.
Can you define Normal goods, Inferior goods, Substitutes, and Complements?
Normal goods - (when income income rises, quantity demand of the good rises)
Inferior goods -(when income rises, quantity demand of the good falls)
Substitutes - (a product or service that can be used in place of another product or service)
Complements -(when a lower price for one good causes demand for another good to increase).
What does “GDP” stand for?
Gross Domestic Product.
Microeconomics and Macroeconomics
What are the shifts for the Demand curve?
Income, prices of related goods, tastes, expectations, and number of buyers.
What are three types of unemployment?
Frictional unemployment, structural unemployment, and cyclical unemployment.
What is the difference between trade-offs and opportunity cost?
Trade-offs are the giving up of one thing in return for something else while Opportunity cost is what you give up to get what you want.
What are the shifts for the Supply Curve?
Prices of inputs, technology, expectations, and number of sellers
What’s potential output?
The quantity of goods and services that would be produced if all resources were fully employed.