Micro Vocab

Question 1

What is the definition of economics

Answer 1

Study of scarcity and choice

Question 2

What is the definition of microeconomics

Answer 2

The study of how household and companies make declines and how their decisions interact

Question 3

Scarcity

Answer 3

Result of limited resources and unlimited wants

Question 4

Opportunity cost

Answer 4

What you must give up in order to get something

Question 5

Resource

Answer 5

Anything that can be used to produce something else

Question 6

Consumer good

Answer 6

Good purchased for consuming and not used in the production of another good

Question 7

Capital good

Answer 7

A physical assist to create other goods (stove)

Question 8

Economic system

Answer 8

Decisions about production and consumption are made by the gvt or central authority

Question 9

Market economy

Answer 9

Decisions about production and consumption are made by the interactions of producers and consumer markets

Question 10

Mixed economy

Answer 10

A market based Econ,g that has gvt intervention for specific purposes

Question 11

Efficiency

Answer 11

Maximizing an objective

Question 12

Equity

Answer 12

Deciding how to divide resource among recipients

Question 13

Positive statement

Answer 13

Based on facts

Question 14

Normative statement

Answer 14

Based on opinion

Question 15

Model

Answer 15

Simplified representation

Question 16

Ceteris paribus

Answer 16

Used to isolate and study one variable at a time all other things equal

Question 17

Rationality

Answer 17

People want more of a good thing

Question 18

Marginal analysis

Answer 18

Comparing benefits and marginal costs to decline