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21 Cards in this Set
- Front
- Back
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Economics
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common sense science of how and why people, businesses, and governments make the choices they do
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instability
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everyone has unlimited wants
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scarcity
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everything is limited in quantity but that doesn't mean that everything is in short supply
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biblical economists
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a believer who exercises wise care in making all choices, with the goal of pleasing Jesus Christ
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economic cost
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value people place on a good or service and is reflected in its price
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good
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tangible thing that has a measurable life span
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services
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intangible items
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nuisance goods and services
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goods and services that bear a negative economic cost
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recycling
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taking nuisance goods and turning them into economic goods
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free goods
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price tag of zero
ex. air and water |
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free services
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services provided freely by God in nature
ex. wind by a windmill, a rushing stream on a water wheel, and geothermal steam on an electric power generator |
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Diamond-Water Paradox
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which is more valuable diamonds or water
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intrinsic value
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a thing is valuable because of the nature of the product such as its scarcity or the amount of labor and natural resources that went into its production
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subjective value
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worth of everything is determined by its usefulness to the buyer
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opportunity benefit
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choice is the satisfaction a person receives from it
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opportunity cost
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satisfaction one gives up by not choosing what was second best
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util
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imaginary unit of satisfaction economists use
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microeconomics
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concerns itself with choices made by individual units
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macroeconomics
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concerned with large scale economic choices and issues
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positive economics
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observing economics choices and predicting economics events
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normative economics
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value judgments about existing or proposed economic policies
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