M1

Question 1

Is the study of how we make choices when there aren’t enough resources to satisfy all our wants.

Answer 1

ECONOMICS

Question 2

has several critical and closely interrelated features.

Answer 2

THE ECONOMIC PERSPECTIVE

Question 3

resources needed to make goods and services are limited. Because we don’t have enough resources to satisfy everyone’s wants, we have to make choices about what we can have and what we must give up.

Answer 3

scarcity

Question 4

when you choose one thing, you miss out on the next best alternative.

Answer 4

opportunity cost

Question 5

means that people usually make decisions that they believe will make them happier or more satisfied.

Answer 5

purposeful behavior

Question 6

is a key concept in economics that helps us make decisions by comparing the additional

Answer 6

Marginal analysis

Question 7

refers to the next unit or the next step we take, rather than looking at the total or average.

Answer 7

marginal

Question 8

evaluating whether doing a bit more or a bit less of something is worth it.

Answer 8

marginal analysis

Question 9

Whenever you make a decision, you’re not just choosing one option over another: you’re also giving up the next best alternative.

Answer 9

opportunity cost

Question 10

helps you make informed decisions by carefully considering the extra benefits and costs of your actions

Answer 10

Marginal analysis

Question 11

This approach is applicable not just in economics but in everyday life, helping you optimize your choices to get the most out of your limited resources—whether they be time, money, or energy.

Answer 11

Marginal analysis

Question 12

uses the scientific method to understand how things work. This involves observing real-world behavior, forming a hypothesis

Answer 12

economics

Question 13

If a hypothesis is tested many times and consistently works, it becomes a theory, and if it’s widely accepted, it might be called a ____

Answer 13

law/principle

Question 14

These are simplified versions of reality that help economists understand and predict how the economy works. They’re like shortcuts that help explain complex behaviors in simpler ways.

Answer 14

Theories, Principles, and Models

Question 15

are general rules about how most people or
businesses behave. For example, if the price of a product drops, most people will buy more of it. This doesn’t mean everyone will, but it’s a general trend.

Answer 15

Generalizations

Question 16

When economists study something, they often assume that all other factors stay the same

Answer 16

Other-Things-Equal Assumption

Question 17

Many economic ideas are shown using ___, which help visualize the relationships between different variables.

Answer 17

Graphical Expression

Question 18

are two main branches of economics that focus on
different levels of the economy.

Answer 18

Microeconomics and macroeconomics

Question 19

looks at the small, detailed parts of the economy.

Answer 19

microeconomics

Question 20

focuses on the decisions made by individual consumers, workers, households, and businesses

Answer 20

microeconomics

Question 21

looks at the big picture of the entire economy.

Answer 21

macroeconomics

Question 22

studies how the whole economy behaves, focusing on things like overall economic growth, unemployment rates, inflation, and how the government and businesses impact the economy as a whole

Answer 22

macroeconomics

Question 23

uses aggeegates

Answer 23

macroeconomics

Question 24

means grouping similar economic units to understand the economy better.

Answer 24

aggregates

Question 25

are general rules about how most people or businesses behave.

Answer 25

Economic principles