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;
31 Cards in this Set
- Front
- Back
|
Society has limited resources, therefore it cannot produce all the goods and services people wish to have.
|
Scarcity
|
|
|
Society has limited resources, therefore it cannot produce all the goods and services people wish to have.
|
Scarcity
|
|
|
Society has limited resources, therefore it cannot produce all the goods and services people wish to have.
|
Scarcity
|
|
|
The study of how society manages its scarce resources (which goods are produced, who consumed those goods).
|
Economics
|
|
|
Principle 1
|
People face trade-offs.
|
|
|
Principle 1
|
People face trade-offs.
|
|
|
Principle 2
|
The cost of something is what you give up to get it.
|
|
|
What is the opportunity cost of an item?
|
What you must give up to get that item.
|
|
|
Principle 2
|
Rational people think at the margin.
|
|
|
Principle 2
|
Rational people think at the margin.
|
|
|
Principle 4
|
People respond to incentives.
|
|
|
Principle 5
|
Trade can make everyone better off.
|
|
|
Principle 6
|
Markets are usually a good way to organize economic activity.
|
|
|
Principle 7
|
Governments can sometimes improve market outcomes.
|
|
|
Principle 8
|
A country's standard of living depends on its ability to produce goods and services.
|
|
|
Per-capita income in the U.S. equals about __ times per-capita income in Mexico and about __ times per-capita income in Nigeria.
|
4 times than Mexico and 40 times than Nigeria.
|
|
|
By what factor has per-capita income in the U.S. increased by?
|
8
|
|
|
By what factor has per-capita income in the U.S. increased by?
|
8
|
|
|
Principle 9
|
Prices rise when the government prints too much money.
|
|
|
Principle 9
|
Prices rise when the government prints too much money.
|
|
|
Principle 10
|
Society faces a short-run trade-off between inflation and unemployment.
|
|
|
The study of how households and firms make decisions and how they interact in specific markets.
|
Microeconomics
|
|
|
The study of economy-wide phenomena.
|
Macroeconomics
|
|
|
The development of statistical tools for analyzing economic data.
|
Econometrics
|
|
|
Positive analysis is __.
|
descriptive
|
|
|
A statement about how the world works.
|
A positive statement.
|
|
|
Normative analysis is __.
|
prescriptive
|
|
|
A statement about how the world should be.
|
A normative statement.
|
|
|
A statement about the consequences of a particular action.
|
A positive statement/analysis.
|
|
|
A statement about which action should be taken.
|
A normative statement/analysis.
|
|
|
What are two basic reasons for why economists often appear to give conflicting advice to policymakers.
|
Economists may disagree about the validity of alternative positive theories about how the world works, and because economists must have different values.
|
