Scarcity, Methodology, and Graphing Flashcards Preview

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Flashcards in Scarcity, Methodology, and Graphing Deck (50)
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1

What is scarcity?

imbalance between amount of something people want, and how much is freely available

2

Economics is the study of what?

rational choice under conditions of scarcity

3

Which of the following are scarce: air, space or trash?

air and space

4

What is a rational choice?

a calculated, self-interested decision

5

A person who makes a rational choice takes what into consideration?

cause/effect and consequences

6

Opportunity cost is the best _____ forgone when a choice is made.

alternative

7

What is an example of an opportunity cost of going to class?

sleeping late

8

True or False: Every choice has an opportunity cost.

True

9

True or False: Economics is about money.

False

10

Economics revolves around how people make choices in times of ______?

scarcity

11

Economics is considered a _____ science.

social

12

What method does Economics use?

scientific method

13

In the scientific method, how many GENERAL questions do economists ask?

three

14

In the scientific method, how many SPECIFIC questions do economists ask?

two

15

What is the second step economists do in the scientific method?

build a model

16

What is the third step economists do in the scientific method?

develop and test hypotheses

17

To employ the scientific method, you must _____ one variable and hold all others constant.

isolate

18

What does ceteris paribus mean?

all other things held constant

19

In what three areas do you find economists?

business, government, and academics

20

What are the two typed of economic statements?

positive and normative

21

Which type of statement is about economics as a predictive, descriptive science?

positive statement

22

what type of statement is about making judgements or evaluations?

normative statement

23

What are the two types of Economics?

Microeconomics and Macroeconomics

24

Which type of economics is about the decision making process of individuals?

Microeconomics

25

Which type of economics is about aggregate decision making?

Macroeconomics

26

Microeconomics ignores money and looks at the economy as one big ______ system.

barter

27

Micro and Macro economics both talk about consumption in a _______.

household/households

28

In what player of the economy does microeconomics talk about ratio of labor to capital?

business

29

In both types of economics, this player in the economy works mostly as a policy player.

government

30

This economic player is not applicable to microeconomics.

foreign trade