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26 Cards in this Set
- Front
- Back
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Macroeconomics studies...
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the entire economy
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What implies the greatest degree of confidence in an economic generalization?
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a principle
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Microeconomics studies...
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individual economic units and specific markets
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"Want" exceeds "Have" because...
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productive resources are limited
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An economic model is...
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an ideal (utopian) type of economy for which society should strive to achieve through the use of economic policy
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Economists use both...
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the economic perspective and the scientific method
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Economic perspective entails...
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a comparison of marginal benefits and marginal costs in decision making
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Rational individuals may make different choices because...
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their preferences and circumstances differ
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Economics is the study of...
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how to use scarce resources efficiently
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The production possibilities curve is a....
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frontier between all combos of two goods that can be produced and those combinations that cannot be produced
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The production possibilities curve has...(what kind of slopes)
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a negative slope that increases as we move along it from left to right
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Normative economics incorporate...
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value judgments or recommendations
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Positive economics focuses on...
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facts and cause-and-effect relationships
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In order to operate at some point on the PPCurve, the economy must...
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produce anywhere along the line while using all the resources
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If marginal cost is higher than marginal benefit, then buy or not?
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No
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If marginal benefit is higher than marginal cost, then buy or not?
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buy
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A Boeing 757 airplane would be an example of ...
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a capital good
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In a competitive economy prices influence...(3)
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consumers in their purchases of goods and services, businesses in their purchases of economic resources, and workers in making occupational choices.
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The market system can negotiate reallocations of resources that are appropriate to change in consumer tastes. technology, and resource supplies" best describes...
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the guiding function of competitive prices.
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An increase in Marsha income will...
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shift her budget to the right
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The market system's answer to fundamental question "What will be produced?" is essentially....
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goods and services that are profitable
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the negative slop of the production possibilities curve illustrates that....
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when resources are fully employed are fully employed, an economy can produce more of thing only by producing less of something else
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A microeconomist would most likely study...
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how consumers respond to a change in gasoline prices
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The fundamental problem of economics implies that...
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individual and communities must make choices among competing alternatives
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staying home and studying is an example of ...
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opportunity cost
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studying an extra hour will be..
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if marginal benefit of studying an extra hour exceeds its marginal cost
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