microeconomics correct answers the study of choices made by consumers and firms, markets and their consequences, and the role of government in influencing the outcomes of markets
macroeconomics correct answers the study of the economy as a whole; unemployment, inflation, economic growth, and rel...
Econ 100 Ch 1-3 || WELL-ENLIGHTENED!!
microeconomics correct answers the study of choices made by consumers and firms, markets
and their consequences, and the role of government in influencing the outcomes of markets
macroeconomics correct answers the study of the economy as a whole; unemployment,
inflation, economic growth, and related economic policies are central topics
efficiency correct answers the production of goods and services in a way that will maximize
our satisfaction, given the existing amount of labor, machines, and other resources
capital correct answers factories, machines, inventories, and tools in an economy; sometimes
described as physical capital; used in producing other goods and services
economic resources correct answers labor, capital, and our natural resources that can be used
to produce goods and services
scarcity correct answers our wants are greater than our abilities to satisfy them; leads to the
necessity for making choices about how we use our resources; NOT the same as a shortage
choices for an economic system correct answers what to produce, how to produce, and for
whom to produce
opportunity cost correct answers what one actually gives up doing when making a choice; the
value of he best forgone alternative
sunk cost correct answers a cost that has already been paid and cannot be recovered
fixed costs correct answers costs that do not change as we make a decision
marginal benefit correct answers the increase in benefits resulting from an action or the
increase in benefits resulting from producing one more unit of output
marginal cost correct answers the increase in costs resulting from an action or the increase in
costs resulting from producing one more unit of output
decision-making rule correct answers if the additional benefits (correctly measured) are
greater than the additional costs (correctly measured), go for it; if the additional costs are
greater than the additional benefits do not go for it
markets correct answers methods through which buyers and sellers come together and in so
doing determine the prices of goods and the quantities that will be exchanged
primary economic roles for government correct answers private property rights and contracts,
a monetary system, unemployment and economic growth, competition, incentives, fairness
economic model correct answers an abstract description of a part of an economy. simplifying
assumptions are made, with a goal of understanding and explaining the effects of economic
events
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