Building and testing Theories
Scarcity, Choice, and Opportunity Cost
Vocabulary Terms
Types of resources and terms
The Economic way of Thinking
100
An explanation of how something works, designed to answer a question for which there is no obvious answer is
What is a theory?
100
Health, love, success, freedom, respect are examples of
What is an intangible good?
100
To produce goods and services
What is the use of resources?
100
Payment to a land resource
What is rent?
100
Economists think in terms of ______ and _______
What is cost and benefit?
200
What does having no obvious answers to questions push economists to do?
What is building theories?
200
In economics, the term used to describe things a person desires to obtain is
What is wants?
200
An economic system in which individuals own most, if not all, the resources and control their use.
What is free enterprise?
200
The physical and mental talents that people contribute to the production of goods and services is
What is labor?
200
What is the study of the behavior and choices of relatively small economic units, such as an individual or a single business firm?
What is microeconomics?
300
The stock market rising or faling and the crime rate increasing more in the USA in England are examples of what types of questions?
What is a question with no obvious answer?
300
A consequence of scarcity is?
What is competition?
300
A plan that specifies the direction economic activities are to take.
What is an economic plan?
300
When a society answer the three economic questions
What is an economic system?
300
A situation in which more of one thing necessarily means less of something else is?
What is a trade-off
400
What allows theories to be predicted more accurately today?
What is the advanced technology of computers?
400
Cars, shoes, computers, clothes, DVD players are examples of
What is a tangible good?
400
How all the income earned in a country is divided among different groups of income earners.
What is income distribution?
400
Land, labor, capital, and entrepreneurship
What is the four resources?
400
What is the study of the behavior and choices as they relate to the entire economy.
What is macroeconomics?
500
What is to be done with a theory that seems unreasonable?
What is not to be judged?
500
What is the name of the science that studies the choices of people trying to satisfy their wants in a world of scarcity?
What is economics?
500
An economic system in which government controls and owns many of the resources.
What is socialism?
500
What goods will be produced is
What is the first question every society has to answer?
500
An economy in which economic actions taken anywhere in the world may affect an individual's standard of living is known as?
What is a global economy?
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