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18 Cards in this Set
- Front
- Back
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Scarcity |
The inability to satisfy all our wants |
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Economics is the social science that studies... |
How people make choices to deal with scarcity |
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Rational Choice |
Uses the available resources to most effectively satisfy your wants |
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Opportunity Cost |
What you give up for an item |
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Consumption Good |
A good that will be used by you. |
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Capital Good |
A good used to make more goods. |
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Both a good and a factor of producion |
Capital |
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The owners of the resources ___, are paid ___. |
Capital, Interest |
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Who decides what goods will be produced? |
The government, consumers, and producers |
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The circular flow of households, firms, and government shows... |
The flow of expenditures. |
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Consumption goods are bought and sold in... |
The Goods Market |
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Who's a seller in the factor market? |
Households only. |
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Firms are on the ___ side of the factor market... |
Demand |
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Firms are on the ___ side of the goods market... |
Supply |
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What's a micro issue? |
Gasoline prices. |
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What's a macro issue? |
The effect on the economy if the government raises taxes. |
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An example of a positive statement... |
Lower ticket prices would lead to more people at a ballgame. Prices rise when the government increases sales tax. |
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Normative Analysis... |
Describes how the world ought to be. and Depends on people's value judgement. |
