Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
what is economics?
|
the study of peoples incentives and choices, and what happesn to coordinate their decisions and acitons
economics is a social science--study of human behavior |
|
|
what are resources?
|
inputs to production
ex: labor, capital, land |
|
|
what is capital?
|
human made inputs to production
ex: tools, equiptment, machinery |
|
|
what is scarcity?
|
our inability to satisfy all of our wants
|
|
|
what are the 2 big economic questions?
|
1. what how and for whom to produce?
what=consumption, how=production, for whom=distribution 2. when is the pursuit of self interest in the social interest? adam smith |
|
|
what is macroeconomics?
|
the study of the relationships among aggregate economic agents and the nation and global markets
|
|
|
what is an economic way of thinking?
|
analytical: a way of dividing the whole into elemental parts and looking at the interrelation of the parts to the whole
ex: car engine |
|
|
what is choice at the margin? what is marginial benefit/cost?
|
identifying the additional benefit cost from an increase in an activity
m.ben: what we gain, m.cost, what we lose |
|
|
does marginial benefit increase or decrease?
|
decrease (first chocolate bar is better than the second)
|
|
|
what is opportunity cost?
|
the value of the next best forgone alternative (the next best thing you give up when you make a choice)
|
