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;
8 Cards in this Set
- Front
- Back
|
Scarcity
|
the fundamental economic problem that human wants exceed the availability of time, goods and resources. Individuals and socety therefore can never have everything they desire.
|
|
|
Resources
|
Factors of production classified as land, labor, and capital. Entrepreneurship is a special type of labor. An entrepreneur seeks profits by taking risks and combining resources to produce innovative products.
|
|
|
Economics
|
the study of how individuals and society choose to allocate scarce resources in order to satisfy unlimited wants. Faced with unlimited wanted and scarce resources, we much make choices among alternatives.
unlimited wants->scarcity->Society chooses |
|
|
Macroeconomics
|
applies an economywide perspective that focuses on such issues as inflation, unemloyment, and the growth rate of the economy
|
|
|
Microeconomics
|
examines individual decision-making units within an economy, such as a consumer's response to changes in the price of coffee and reason for changes in market prices of personal computers
|
|
|
models
|
simplifies descriptions of reality used to understand and predict economic events. An economic model can be stated verbally or in a table, a graph, or an equation. If the evidence is not consistent with the model, the model is rejected.
Identify the problem-> Develop a model based on simplifies assumptions-> collect data, test the model, and formulate a conclusion |
|
|
Ceteris paribus
|
holds "all other factors unchanged" that might affect a particular relationship. If this assumption is violated, a module cannot be tested. Another reasoning pitfall is to thing that association means causation.
|
|
|
Posiive v.s Normatve Economic Analysis
|
mayjor reason fo
|
