Foundations
What is economics the study of?
How and why people make choices.
When one option is chosen, what happens to the other available options?
They are given up
Studying how an individual consumer chooses between products is which type of economics?
Microeconomics
“The unemployment rate increased last year.”
Is this a positive or normative statement?
Positive economic statement
According to 1 Timothy 6:6-11, godliness combined with what brings great gain?
Contentment
Define Scarcity
The conflict between unlimited wants and limited resources.
What do we call the next best alternative that is given up when making a choice?
Opportunity cost
Studying inflation across an entire country is which type of economics?
Macroeconomics
“The government should raise the minimum wage.”
Is this a positive or normative statement?
Normative economic statement
What biblical principle emphasizes responsible management of resources?
Stewardship
According to the textbook, economics as a science begins with what?
Observation of choices
If you choose to study Economics instead of English, what is the opportunity cost?
The benefit of studying English
A business deciding how many workers to hire
Microeconomics
Which type of economic statement can be tested using facts and evidence?
Positive economic statement
Which Bible passage discusses wealth, contentment, and desire?
1 Timothy 6:6–11
What do we call goods that carry a price greater than zero?
Economic goods
Why is opportunity cost not always measured in money?
Because it represents lost alternatives
A government responding to nationwide unemployment
Macroeconomics
Which type of economic statement is based on opinions or value judgments?
Normative economic statement
According to 1 Timothy 6, what often leads people astray?
The pursuit of wealth
What economic principle explains why value differs from person to person?
Subjective value
Explain why opportunity cost would not exist if resources were unlimited.
No alternatives would need to be given up
Explain why hiring decisions are microeconomic while unemployment is macroeconomic.
One involves individual firms; the other affects the entire economy
What is Hazlits "One Lesson"
economic policy must consider not only the immidiate, obvious effects on one group, but also the Long-term consequences for all groups.
How does contentment help resolve the unlimited wants vs. scarcity conflict?
It reduces unlimited wants