Final Exam Flashcards
1
Q
Economics is best defined as the study of?
A
The choices made by people faced with scarcity.
2
Q
Economics deals with how?
A
Individuals make decisions to use scarce resources in order to satisfy their unlimited wants
3
Q
The study of the choices made by individual households, firms, and government is called?
A
Microeconomics
4
Q
A trade-off refers to
A
d. holding other variables fixed
5
Q
What is a possibility production Frontier (PPF)
A
A curve that shows the maximum attainable combinations of two goods that can be produced with available resources and current technology
6
Q
The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n)
A
comparative advantage
7
Q
A
