Chapter 1 Flashcards
1
Q
Human Capital
A
improve knowledge
2
Q
Entrepreneurial
A
risk taking
3
Q
Physical Capital
A
machinery and tools used in production process
4
Q
Financial Capital
A
used to buy physical capital(money, stocks, bonds…)
5
Q
Land
A
trees, minerals, oil,water
6
Q
Scarcity
A
Limited amounts of resources
7
Q
Economics
A
Study of how to use resources efficiently
8
Q
Methodology
A
Problem Identification
Model Development
Test a theory
9
Q
Association Relationship
A
Two changing variables are independent from each other
10
Q
Causation Relationship
A
variables effect one another
11
Q
Positive Economic Statement
A
Based on facts
12
Q
Normative Economic Statement
A
Based value judgement
13
Q
Concave Functions
A
a connected line segment lies below the curve
14
Q
Convex Function
A
a connected line segment lies above the curve
