Chapter 1 Flashcards
1
Q
3 economic questions all economies must answer?
A
What to produce?
How to produce?
From whom to produce?
2
Q
Factors of production?
A
Land, labor, capital, and entrepreneurship
3
Q
Opportunity costs?
A
One thing is given up to get something else
4
Q
Production possibilities curve?
A
Hypothetical choices in production
5
Q
Market mechanisms?
A
Market prices and sales to make desired outputs
6
Q
Microeconomics
A
Micro focuses on details for the big picture
7
Q
Macroeconomics
A
Focuses on the behavior of an entire economy
8
Q
What is government failure?
A
Fail to improve economic outcomes
