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40 Cards in this Set

  • Front
  • Back
Every society is faced with the problem of _____, or not enough resources to satisfy wants.
scarcity
_____ is the study of how people choose to allocate limited resources to satisfy unlimited wants.
economics
Economists classify resources or factors of production as land, _____, and capital.
labor
_____ is the the study of economics that focuses on the behavior of small units (buisiness firms, consumers, etc.) within the economy
microeconomics
______ means that while some variables whill change in an economic model, everything else will be held constant.
ceteris paribus
Human-made resources or _____ consist of tools, factories, and equipment.
capital
_____ is the study of economics that focuses on the problems of inflation, unemployment, and growth or the behavior of the entire economic system.
macroecomomics
_____ economics is the application of ethics and economic philosophy to the study, and is subjective.
normative
A decision by policy makers to increase efficiency will mean a reduction in _____ because there is always a trade-off between the two.
equity or equality
____ is a term used by economists for natural resources such as oil, water, iron ore, oil, etc.
land
The study of what is, or the objective study of economics in which economic behavior is explained and described is called _____ economics
positive
_____ is a standard used by economists to evaluate how economic decisions and poicymaking affect the allocation of resources.
efficiency
A decision by poicy makers to increase efficiency will mean a reduction in _____ because there is always a trade-off between the two
equity or equality
Scarcity can be eliminated if it (is)

a) people satisfy needs rather than wants
b) new resources are discovered
c) the output of goods and services is increased
d) impossible
d
Which of the following is NOT a factor of production?

a) Computer software
b) Dollars
c) Water
d) Engineer
e) Truck
b
An economic model is a

a) presentation of all relevant aspects of real-world events
b) simplified description of reality used to understand the way variables are related
c) data set adjusted for irrational actions of people
d) value judgement of the relationship between variables
b
Economics is the study of

a) the government decision making process
b)how to successfully operate a business
c) choices because of the problem of scarcity
d) value judgement of the relationship between variables
c
Not included in the study of microeconomics is (are)

a) unemployment
b) union wages
c) computer prices
d) antitrust laws (laws that encourage competitive markets)
e) monopolies
a
"The government should dismantle the social security system." This is an example of

a) positive economics
b) ceteris paribus
c) fallacy of association
d) normative economics
d
Which of the following is an example of positive economics?

a) Given a budget surplus, I think taxes should be cut.
b) The President is doing a great job handling the economy.
c) I think interest rates will continue to fall.
d) If interest rates fall, investment spending will increase.
d
Not included in the study of macroeconomics is (are)

a) inflation
b) economic growth
c) oligopolies
d) the Federal Reserve
e) investment spending
e
Normative economics

a) is the study of what is
b) is objective
c) explains and describes economic behavior
d) involves opinions based on ethics and economic philosophy
d
T/F Normative economics is the study of what ought to be.
T
T/F According to economists, money is a factor of production or a resource necessary to produce output.
F
T/F A Federal Reserve policy to change interest rates would be included in the study of macroeconomics.
T
T/F It is possible to increase income taxes and reduce income equality at the same time.
T
T/F Positive economics is the objective or scientific study of economic behavior.
T
T/F A suit by the Justic Department to block a merger because it may lessen competition would be included in the study of microeconomics.
T
T/F The statement "Raising payroll taxes rather than lowering retirement benefits is the best solution for keeping the Social Security System financially solvent" is an example of positive economics.
F
An individual who sees profits by combining resources to produce innovative and creative products.
entrepreneur
Inputs that are used to produce goods and services.
resources
A factor of production other than land or capital.
labor
A natural resource.
land
Human-made goods used to produce other goods.
capital
_____ economics is the study of what is.
positive
A phrase that means while certain variables change, all other things remain unchanged.
centerus paribus
The study of how society chooses to use limited resources to produce and consume output.
economics
____ economics is the study of what ought to be.
normative
Condition that requires that choices must be made about resource allocation.
scarcity
A simplified description of reality.
model