Econ Basics
all economies face this condition
what is scarcity
this man, the father of modern economics, is also known for the diamond-water paradox
who is Adam smith
these are reasons for action or inaction
what are incentives
this book, written 1776, was the first book on microeconomics
what is the wealth of the nations
this phrase, sometimes abbreviated in economics, is meant to demonstrate the idea of trade-offs
what is "there is no such thing as a free lunch"
this branch of economics studies whole economies
what is macroeconomics
this phrase, which sounds like a bad hour movie, is used by classical economists to answer the three economic questions
what is utility
according to Adam smith, our economic decisions are driven by this
what is rational self-interest
in classical economics, it includes all decision-makers who live under one roof
what are households
in a command economy, they answer the three fundamental questions
what are central planners
in economics, a tractor serves as an example of this factor of production
what is capital
according to classical economic theory, consumers attempt to maximize this, another word meaning "satisfaction"
what is utility
in economics, this word means "added" or "extra"
what is marginal
this equation for profit
what is total revenue-total cost
the amish are an example of this type of economy
what are prices
he introduced the idea of creative destruction
who is Joesph schumpeter
the result of this feature of market economics is that people should produce little of what they consume and consume little of what they produce
what is specialization
the circular flow model of economics divides the world into two types of markets: product markets and these
what are resource markets
theoretically, they own the means of production in a centrally planned economy
who are the public
this phrase is used to mean the "value of the next best alternative" and helps explain why students are less likely to study on a Friday night
what is opportunity cost
he demonstrated the law of unintended consequences through his parable of the broken window
who is Frederic Bastiat
these economic statements reflect the way the world could or should be
what are normative statements
these are used to display the maximum possible combinations that a firm can create
what are PPFs
there are three factors of production in classical economics
what are land, labor, and capital