Basic Economic Concepts
The fundamental economic condition where limited resources are insufficient to satisfy unlimited human wants and needs.
Scarcity
This is the sacrifice of one resource or production choice for another.
Trade-off
A person with a vested interest in an economic decision is called this.
Stakeholder
A commonly accepted belief proven false is known as this.
Logical Fallacy
These are goods that satisfy human needs directly.
Consumer Goods
This term refers to the satisfaction or benefit from a choice.
Utility
The direct or indirect result of an action or decision is called this.
Consequence
Economics is part of this group of sciences that study human behavior.
Social Science
Oversimplifying a situation to a single cause is called this.
Fallacy of Single Causation
This graph shows the maximum combinations of goods an economy can produce.
Production Possibilities Curve
To maximize use of scarce resources in production is to do this.
Economize
This is doing things correctly to achieve a desired result.
Effectiveness
This method involves observation, data collection, explanation, and verification.
Scientific Method
Assuming that what happens first causes what follows is this fallacy.
Post Hoc Fallacy
These goods, like machines or tools, are used to make other goods.
Capital Goods
This is the study of how societies make decisions about scarce resources.
Economics
This term means using the bare minimum of resources to achieve a desired outcome.
Efficiency
This branch of economics focuses on descriptive statements of the past, and conditional forecasts of the future.
Analytical / Positive Economics
This fallacy assumes what is good for an individual is good for the whole.
Fallacy of Composition
As you produce more of one good, the opportunity cost increases. This is called what?
Law of Increasing Relative Cost
This self sustaining system includes independent transactions that create flows of money and goods.
Economy
This is the value of the next best alternative you give up when making a choice.
Opportunity Cost
This branch of economics involves value judgments rather than facts.
Normative / Policy Economics
This fallacy limits choices to only two extremes, ignoring other reasonable alternatives.
False Dilemma Fallacy
This law states that outputs increase at a declining rate when one input is held constant.
Law of Diminishing Returns