idk

Question 1

property rights

Answer 1

the ability of an individual to own and exercise control over scarce resources

Question 2

market failure

Answer 2

a situation in which a market left on its own does not allocate resources efficiently

Question 3

externality

Answer 3

the impact of one person’s actions on the well-being of a bystander

Question 4

market power

Answer 4

the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices

Question 4

productivity

Answer 4

the quantity of goods and services produced from each unit of labor input

Question 5

business cycle

Answer 5

fluctuations in economic activity, such as employment and production

Question 6

scarcity

Answer 6

the limited nature of society’s resources

Question 6

economics

Answer 6

the study of how society manages its scarce resources

Question 7

efficiency

Answer 7

the property of society getting the most it can from its scarce resources

Question 8

equality

Answer 8

the property of distributing economic prosperity uniformly among the members of society

Question 9

opportunity cost

Answer 9

whatever must be given up to obtain some item

Question 10

rational people

Answer 10

people who systematically and purposefully do the best they can to achieve their objectives

Question 11

marginal change

Answer 11

an incremental adjustment to a plan of action

Question 12

incentive

Answer 12

something that induces a person to act

Question 13

market economy

Answer 13

an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services

Question 14

circular-flow diagram

Answer 14

a visual model of the economy that shows how dollars flow through markets among households and firms

Question 15

Production Possibilities frontier (PPF)

Answer 15

a graph that shows the combinations of output that the economy can possibly produce with the available factors of production and production technology

Question 16

microeconomics

Answer 16

the study of how households and firms make decisions and how they interact in markets

Question 17

macroeconomics

Answer 17

the study of economy-wide phenomena, including inflation, unemployment, and economic growth

Question 18

positive statement

Answer 18

claims that attempt to describe the world as it is

Question 19

normative statements

Answer 19

claims that attempt to prescribe how the world should be

Question 20

absolute advantage

Answer 20

the ability to produce a good using fewer inputs than another producer

Question 21

comparitive advantage

Answer 21

the ability to produce a good at a lower opportunity cost than another producer