Vocab
What is it called when resources are limited but wants are unlimited?
Scarcity
What do Gains from Trade need? (Both answers needed)
Maximization of benefits between both parties
and
Benefits must outweigh costs for all involved
The different ways economic models can be expressed.
mathematical formulas
Diagrams
Uses economics analysis to make predictions about outcomes. (cause and effect)
Positive Economics
This is the study of daily choices and how they affect our communities.
Economics
The assumption that economic actors use cost-benefit analysis to choose an outcome that produces the greatest benefit.
Rationality
What are economic models used for? (Only one answer required but giving more gives extra points)
Understand interactions between economic phenomena
Capture essential data and remove excess
Uses economics analysis to guide value-based economic decisions. (should)
Normative Economics
Every choice requires giving up something to earn something else.
Trade-Offs
The decision-making process conducted through evaluating opportunity costs of decisions.
Cost-Benefit Analysis
The study of individual behavior within a market.
Microeconomics
What is it called when resources cannot be reallocated without making an individual worse off.
Pareto Efficiency
It takes you a third of an hour to do your math hw and 3 hours to do your Academic Decathlon reading. What is the opportunity cost of doing your math homework?
1/9 of your reading
The study of overall performance of the economy.
Macroeconomics
The potential benefits that are lost when choosing an option over another.
Opportunity Costs
If Alex can produce 4 apples per hours or 2 bread per hour, and Blair can produce 3 apples per hour or 1 bread per hours, who has the comparative advantage in producing apples? (hint: look at opportunity costs of each)
Blair
When was Italian economist Vilfredo Pareto born?
1848
"Higher taxes on cigarettes can lead to a decrease in demand for them," is an example of what type of economics?
Positive Economics