Flashcards in Ch 1 & Ch 2 Quizes Deck (18):
What is the opportunity cost?
It is the value of other goods and services.
People buy goods and services if?
The marginal benefit greater than the marginal cost.
Economizing problem is?
Productive resources are scares relative to economic want.
A point of the production possibility curve.
Attainable and resources are fully employed.
What is the statement of an economic rational for the law of increasing opportunity cost?
Many economic resources are better at producing one product than another.
What is a major opportunity cost of going to college on a full-time basis?
The foregone income that could be earned working full-time job.
Positive statement vs Normative statement?
Positive statement is relay's on facts VS normative is an opinion like "Should, ought to be, need..."
The market system also known as?
What is one of the five fundamental questions that need to be dealt with in any economic system?
What goods and services will be produced?
Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental question?
What will be produced?
What is an economic hypothesis?
A possible explanation of cause and effect.
How economic theories are generalized?
Based on a careful observation of facts.
What kind of assumptions economists make in constructing models?
The term "other things equal" means that:
A number of relevant variables are assumed to be constant.
What is a normative statement is based on?
A value judgments.
The process of producing and accumulating capital goods is called:
Would a reduction in unemployment produce an outward shift of the production possibilities curve?
No my friend.