Econ Flashcards
1
Q
Scarcity is ___________ because resources are limited and human desires are insatiable.
A
Inescapable
2
Q
What is involved in every choice we make?
A
Trade-Offs
3
Q
Define opportunity costs.
A
What we must give up by making that choice
4
Q
Economics assumes people make choices _________.
A
Rationally
5
Q
_________ makes everyone involved better off.
A
Trade
6
Q
Positive economics uses what to describe phenomena?
A
Analysis
7
Q
Normative economics uses analysis to look at a _________ situation.
A
Relative (should)
8
Q
Describe Pareto Efficiency.
A
It states that one person cannot benefit without someone else losing.
9
Q
What are the two branches of economics?
A
Micro and macroeconomics
10
Q
Economics is the study of…
A
How people make decisions and allocate and distribute scarce resources
