Economics as a social science
The study of how individuals, firms, and governments allocate scarce resources is called?
What is Economics?
The next best alternative foregone when making a choice.
What is opportunity cost? pg. 9
A curve that shows the maximum potential level of output of one good given a level of outputs for all other goods in the economy.
What is the Production Possibility Frontier? pg 18
The production of a limited range of goods by an individual, firm, or country in cooperation with others so that together a complete range of goods is produced.
What is Specialization? pg 20
A complex network of individual, organization, and institutions that allocates resources.
What is an economic system? pg. 27
These statements are objective, testable
What is a Positive Statement? pg. 5
Resources are scare but wants are infinite.
What is the basic economic problem? pg.9
Goods that are used in the production of other goods.
What are capital goods?
Specialization by individuals.
What is division of labor? pg20
The market mechanism and planning are two main ways that resources have been allocated. This is called?
What is The allocation of resources? pg. 27
These statements are value judgments/opinions.
What are Normative Statements? pg 5
Resources that are not scare
What are free goods? pg8
Goods and services that are used by people to satisfy their needs and wants.
What are consumer goods? pg. 18
any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services.
What is a Market? pg. 21
In this economy, the majority of resources are allocated through markets rather than government and planning.
What is a Free Market Economy? pg. 28
All other things being equal
What is Ceteris Paribus? pg. 4
Land, labour, capital, and enterprise.
What are factors of production? pg. 10
A point of possible change
What is a Margin? pg. 18
Primary, Secondary, and tertiary.
What are Sectors of the economy? pg. 21
In this economy, most resources are allocated by the state and the market mechanism only plays a small part.
What is a command economy? pg28
The amount of money you have left to spend after you have paid your taxes, bills, etc.
What is disposable income? pg. 6
Examples are coal, oil, gold, and copper.
What are non-renewable resources? pg. 10
These factors lead to :
the quantity of resources available for production increases.
the quality of the resources increases.
What is Growth in the Economy? pg 15
A medium of exchange, a measure of value, a store of value, & methods of deferred payment.
What are the functions of money? pg. 22-23
When a government tries to help industries in its own country by taxing or restricting foreign goods.
What is protectionism? pg. 32