lessaurn 1 intro to econ

Question 1

social science concerned with the efficient use of scare resources to
achieve the maximum satisfaction of economic wants.

Answer 1

economics

Question 2

exceed the productive capacity of our limited or scarce resources

Answer 2

economic wants

Question 3

focuses on facts and cause-and-effect relationship

Answer 3

positive economics

Question 4

includes description, theory development, and theory testing
(theoretical economics)

Answer 4

positive economics

Question 5

It avoids value judgments, tries to establish scientific statements
about economic behavior and deals with what the economy is
actually like

Answer 5

positive economics

Question 6

Incorporates value judgment about economic about what the
economy should be like or what particular policy actions should be
like or what particular policy actions should be recommended to
achieve a desirable goal.

Answer 6

normative economics

Question 7

It looks at the desirability of certain aspects of the economy

Answer 7

normative economics

Question 7

three economic problem

Answer 7

what are the products and services to produce?
how to produce?
for whom to produce?

Question 7

Embodies subjective feelings about what ought to be

Answer 7

normative economics

Question 8

factors of production

Answer 8

land, capital, labor, entrepreneurial ability

Question 9

factor of production where it includes all natural resources. used in the production process.

Answer 9

land

Question 10

factor of production that includes all manufactured aids use in producing consumer goods and service

Answer 10

capital

Question 11

factor of production is broad term for all the physical and mental talents of
individual available and usable in producing goods and services.

Answer 11

labor

Question 12

factor of production - special human resources, distinct from
labor

Answer 12

entrepreneurial ability

Question 13

economic goal - produce more and better goods and services, or,
more simply, develop a higher standard of living

Answer 13

economic growth

Question 14

economic goal - provide suitable jobs for all citizens who are willing
and able to work

Answer 14

full employment

Question 15

basic economic goal - achieve the maximum fulfillment of wants using
the available productive resources

Answer 15

economic efficiency

Question 16

basic economic goal - avoid large upswings and downswings in the
general price level; that is, avoid inflation and deflation

Answer 16

price-level stability

Question 17

basic economic goal - guarantees that businesses, workers, and
consumers have a high degree of freedom in their economic activities

Answer 17

economic freedom

Question 18

basic economic goal - ensure that no group of citizens
faces poverty while most others enjoy abundance

Answer 18

equitable distribution of income

Question 19

basic economic goal - provide for those who are chronically ill, disabled,
laid off, aged, or otherwise unable to earn minimal levels of income

Answer 19

economic security

Question 20

basic economic goal - seek a reasonable overall balance with the rest of the world in international trade and financial transactions

Answer 20

balance of trade

Question 21

Examines either the economy as a whole or its basic subdivisions or
aggregates, such as the government, household, and business
sectors.

Answer 21

macroeconomic

Question 22

collection of specific economic units treated as if they
were one unit

Answer 22

aggregate

Question 23

look at specific economic units

Answer 23

microeconomics

Question 24

A particular set of institutional arrangements and a
coordinating mechanism to respond to the economizing problem

Answer 24

economic system

Question 25

places where buyers and sellers come together

Answer 25

market

Question 26

is a very backward type of economy. characterized by a system where the production of products, trading and distribution of incomes are sanctioned by custom

Answer 26

traditional economy

Question 27

Resources are privately owned and the people themselves make decisions

Answer 27

capitalism or market system

Question 28

There are many independent buyers and sellers of each
product and resources therefore competition arises giving
height to consumer sovereignty

Answer 28

capitalism or market system

Question 29

government owns the means of production. government dictates. all the capital resources and consumer goods are being divided to its citizenry

Answer 29

command economy

Question 30

there are only few country that has a pure economic system

Answer 30

mixed system

Question 31

also known as laissez-faire capitalism where government’s role would be limited to protecting private property and establishing an environment appropriate to the operation of the market system and keep government from interfering with the economy

Answer 31

pure competition