Chapter 1: What economics is about

Question 1

Goods

Answer 1

Anything from which individuals receive utility or satisfaction.

Question 2

Bad’s

Answer 2

Anything from which individuals receive disutility or dissatisfaction.

Question 3

Utility

Answer 3

The satisfaction one receives from a good.

Question 4

Disutility

Answer 4

The dissatisfaction one receives from a good.

Question 5

what are the 4 recourses

Answer 5

Land, labor, capital, entrepreneurships

Question 6

scarcity

Answer 6

The condition in which our wants are greater than the limited resources available to satisfy those wants.

Question 7

economics

Answer 7

The science of scarcity; the science of how individuals and societies deal with the fact that wants are greater than the limited resources available to satisfy those wants.

Question 8

Rationing Device

Answer 8

A means for deciding who gets what of available resources and goods.

Question 9

Microeconomics

Answer 9

The branch of economics that deals with human behavior and choices as they relate to relatively small units: an individual, a firm, an industry, a single market.

Question 10

Macroeconomics

Answer 10

The branch of economics that deals with human behavior and choices as they relate to highly aggregate markets (e.g., the market for goods and services) or the entire economy.