Econ vocab quiz chapter 1

Question 1

Choice

Answer 1

Decisions between what will and won’t be produced

Question 2

Scarcity

Answer 2

Resources inefficient to satisfy needs and wants

Question 3

Efficiency

Answer 3

Best possible use of scarce resources

Question 4

Equity

Answer 4

Idea of being fair or just

Question 5

Economic well-being

Answer 5

Levels of economic satisfaction and standard of living

Question 6

Sustainability

Answer 6

Long-term viability of actions

Question 7

Change

Answer 7

Change in variables over time

Question 8

Interdependence

Answer 8

Interaction and dependence between decision-makers

Question 9

Intervention

Answer 9

Government involvement

Question 10

Physical Capital

Answer 10

Stock of structures to produce goods and services

Question 11

Human Capital

Answer 11

The knowledge and health of the workforce

Question 12

Natural Capital

Answer 12

The resources of the planet, like air or water

Question 13

Three economic questions….

Answer 13

What/how much to produce?
How to produce?
For whom to produce?

Question 14

Resource Allocation

Answer 14

Assignment of available resources to various individuals

Question 15

Distribution of Income

Answer 15

How much output individuals recieve

Question 16

Economic Model

Answer 16

Simplified representation of real world concepts

Question 17

Economic Theory

Answer 17

General explanation based on tested hypotheses

Question 18

Assumption

Answer 18

A belief or statement taken for granted without proof

Question 19

Ceteris Paribus

Answer 19

“All things held constant”

Question 20

Positive Economics

Answer 20

Based on statements utilizing hypotheses, theories and models

Question 21

Normative Economics

Answer 21

Beliefs or value judgement

Question 22

Equality

Answer 22

The state of being equal

Question 23

Value judgements

Answer 23

Evaluations based on moral or ethical judgements