Chapter 1 Flashcards
(14 cards)
Opinion based
Normative economics
Unlimited wants, but limited funds, therefore you have to make a choice
Scarcity
The study as a whole of the choices people make
Economics
Study of economy as a whole
Macroeconomics
What I’m giving up/value of the next best alternative
Opportunity cost
Study of individual units
Microeconomics
What is the individual economizing problem
You have two goods in and you make a choice based on what you want with the money that you have
Looking at the world through what data tells us
Positive economics
A Good used to produce other goods
Capital good
What is a cost-benefit analysis and what could it also be called
Marginal analysis, it is weighing the benefits and the costs and making a choice
What are the four factors of production
Land
labor
productive capital
entrepreneurship
What are the four parts of the economizing problem for society
2 goods, consumer and capital
Fixed level of technology
Fixed level of resources
Full employment
How do we measure opportunity cost
Giving up/getting
The pleasure, happiness or satisfaction from consuming a good or service
Utility
