Flashcards in Scarcity, Methodology, and Graphing Deck (50)
What is scarcity?
imbalance between amount of something people want, and how much is freely available
Economics is the study of what?
rational choice under conditions of scarcity
Which of the following are scarce: air, space or trash?
air and space
What is a rational choice?
a calculated, self-interested decision
A person who makes a rational choice takes what into consideration?
cause/effect and consequences
Opportunity cost is the best _____ forgone when a choice is made.
What is an example of an opportunity cost of going to class?
True or False: Every choice has an opportunity cost.
True or False: Economics is about money.
Economics revolves around how people make choices in times of ______?
Economics is considered a _____ science.
What method does Economics use?
In the scientific method, how many GENERAL questions do economists ask?
In the scientific method, how many SPECIFIC questions do economists ask?
What is the second step economists do in the scientific method?
build a model
What is the third step economists do in the scientific method?
develop and test hypotheses
To employ the scientific method, you must _____ one variable and hold all others constant.
What does ceteris paribus mean?
all other things held constant
In what three areas do you find economists?
business, government, and academics
What are the two typed of economic statements?
positive and normative
Which type of statement is about economics as a predictive, descriptive science?
what type of statement is about making judgements or evaluations?
What are the two types of Economics?
Microeconomics and Macroeconomics
Which type of economics is about the decision making process of individuals?
Which type of economics is about aggregate decision making?
Microeconomics ignores money and looks at the economy as one big ______ system.
Micro and Macro economics both talk about consumption in a _______.
In what player of the economy does microeconomics talk about ratio of labor to capital?
In both types of economics, this player in the economy works mostly as a policy player.