Chapter 1 Flashcards
What is the difference between a microeconomist and a macroeconomist
A macroeconomists looks at the big picture in relation to more global economics vs. microeconomist have a narrower more specific economical issues.
An economist at the University of Alaska at anchorage has been asked to explain the price of Alaskan crude oil has fallen recently. in order to develop a model, the professor should take which steps:
ID the problem
Gather data on oil prices and unrelated variables for correlations
ask people why they are not purchasing
none of the above
ID the problem, develop a model based on simplifying assumptions and test the model to formulate a conclusion
Which of the following is a microeconomists topic: price of a new home inflation rate economic growth rate unemployment rate forecasts of a recession next year
price of a new home
A factor of production is the same as …
a resource
“the government should provide healthcare for all citizens…” is a statement of …?
normative economic analysis
Which of the following is not an example of a factor of production? a forest, computer program, a labor leader, dollars
Dollars
Which of the following is not a resource? land, labor, money, or capital
money
a good economic model should capture as many details about real-world behavior as possible true or false
false
The statement, “American workers are lazy” is an ecamle of positive economic analysis T or F
False
Which of the following is the best example of an activity that would be undertaken by and entrepreneur: buying and selling stocks and bonds
starting a new business, working on an assembly line, running for political office
starting a new business
people are forced to make choices because of….
unlimited wants and limited resources
Economics according to its definition studies how people:
make choices in the face of scarcity
Scarcity
Scarcity is the condition in which human wants are forever greater than the available supply of time, goods, and resources
Resources
the basic categories of inputs used to produce goods and services. resources are also called factors of production
3 categories of resources
land, labor, capital
what organizes resources to produce goods and services
entrepreneurship organizes _______________to produce goods and services
land
any natural resource provided by nature
labor
the mental and physical capacity of workers to produce goods and services
entrepreneurship def
the creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products.
capital
the physical plants, machinery, and equipment used to produce other goods, capital goods are human-made goods that do not directly satisfy human wants.
financial capital
paper assets such as stocks, bonds, deeds, by itself not productive, instead it is only a paper claim on economic capital
define scarcity
the condition in which human wants are forever greater than the available supply of time, goods, and resources
Define resources
the basic categories of inputs used to produce goods and services, resources are also called factors of production economists divide resources into three categories, land, labor, and capital
define economics
the study of how society chooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants
