Opening Activity 1 Flashcards
(25 cards)
Opportunity cost
What is given up, no horn of plenty
What is demand and supply , what do you have to make
Unlimited wants and needs
Limited resources
Choice
Four factors of production
Land, labor, capital, entrepreneur
Economic description ?
Facts and gathering facts , what is or what’s happening
Abstraction
Focusing on two variables to explain an event
Theory, a theory is not a theory without?, attempts to explain?, models… From… To reduce?
Abstract generalizations about cause and effect in the real world
Abstraction
How real world phenomena are related
Abstract from reality to reduce complexity
Ceteris paribus
All else held constant
Models allow you to reason about relation of x and y without z
Policy
Concerned with controlling economic behavior
Predict future events
Positive economics v. Normative
Tested JUST FACTS
Scientific
In economy
Cannot be tested A policy maker
Value judgement
Ought to be in economy
Economic growth
Increase in per capita GDP
Economic efficiency
obtaining maximum output from available resources
Private sector
Economic activities of private individuals and private businesses
Public sector
Economic activities under the control of the government
Macroeconomics
Concerned with economy as a whole
Microeconomics
Concerned with specific economic units , segment
Products consist of
Good: physical object , tangible
Service: useful labor
Scarcity
When resources do not satisfy wants or needs
Resources
Anything used to satisfy wants or needs
Labor consists of
Paid work
Physical intellectual
What is real capital
Can produce something directly with them
Tools, machinery, factories
Financial capital
Stocks bonds money
Cannot produce something directly
Capital resources
Man made inputs used in production
Capital goods
Used to produce other goods
Consumer goods
For immediate consumption
