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What is the definition of economic cost?
Name one example of a service that is listed in our text
-the labor of an accountant
-the performance of a singer
-the work of a teacher
The process of firms/companies making profits by providing the service of turning various nuisance goods into economic goods
recycling
What is the term that means, "the value of a good or service in dollars"
economic value
What examines large-scale economic choices/issues
macroeconomics
What helps determine the price of a good or service?
the value
What are goods and services that bear a positive economic cost?
Economic goods AND services
What are goods and services with a price tag of zero?
free goods AND free services
What is the economic riddle listed in our text?
Diamond-water paradox
What term matches the following definition: "the approach of observing economic choices and predicting economic events"
positive economics
True or False: A good is intangible
False
economic goods and services have a price tag ______ than zero (higher OR lower)
higher
provide ONE example of a free service that is provided in our text
-wind on a windmill
-a rushing stream on a water wheel
-geothermal steam on an electrical power generator
What terms matches the following definition: "The value a person believes a product to have because of its nature/scarcity."
Intrinsic Value
Define normative economics
refers to making value judgements about existing or proposed economic policies
Name one example of a good that is listed in our text
-textbooks
-shoes
-clothes
-car keys
-eyeglasses
-goldfish
What are goods that a consumer has to pay to be removed and bear a negative economic cost?
nuisance goods
Provide ONE example of a free good provided from our text
-air
-water
What is the definition of subjective value
the value of a product is based solely upon the opinion of the buyer
List ONE of the THREE reasons why economics is considered a science
-economists base their decisions on observations
-economists use those observations to predict future choices
-economists attempt to control future economic events by manipulating economic variables
What is the definition of services?
intangible items
provide ONE example of a nuisance good listed from our text
-cardboard
-used paper towels
-broken toys
-empty bottles
-dirty motor oil
-additional garbage
-toxic waste
-sewage
True or False: As free goods become more scarce, they become economic goods
TRUE
What deals with choices made by individual units: such as, individual people, individual households, and individual business firms
Microeconomics
Name ONE of the THREE important economic ideas that are emphasized by the Austrian School
-free market
-private ownership of property
-limited government