Opening Activity 1

Question 1

Opportunity cost

Answer 1

What is given up, no horn of plenty

Question 2

What is demand and supply , what do you have to make

Answer 2

Unlimited wants and needs
Limited resources
Choice

Question 3

Four factors of production

Answer 3

Land, labor, capital, entrepreneur

Question 4

Economic description ?

Answer 4

Facts and gathering facts , what is or what’s happening

Question 5

Abstraction

Answer 5

Focusing on two variables to explain an event

Question 6

Theory, a theory is not a theory without?, attempts to explain?, models… From… To reduce?

Answer 6

Abstract generalizations about cause and effect in the real world
Abstraction
How real world phenomena are related
Abstract from reality to reduce complexity

Question 7

Ceteris paribus

Answer 7

All else held constant

Models allow you to reason about relation of x and y without z

Question 8

Policy

Answer 8

Concerned with controlling economic behavior

Predict future events

Question 9

Positive economics v. Normative

Answer 9

Tested JUST FACTS
Scientific
In economy

Cannot be tested A policy maker
Value judgement
Ought to be in economy

Question 10

Economic growth

Answer 10

Increase in per capita GDP

Question 11

Economic efficiency

Answer 11

obtaining maximum output from available resources

Question 12

Private sector

Answer 12

Economic activities of private individuals and private businesses

Question 13

Public sector

Answer 13

Economic activities under the control of the government

Question 14

Macroeconomics

Answer 14

Concerned with economy as a whole

Question 15

Microeconomics

Answer 15

Concerned with specific economic units , segment

Question 16

Products consist of

Answer 16

Good: physical object , tangible
Service: useful labor

Question 17

Scarcity

Answer 17

When resources do not satisfy wants or needs

Question 18

Resources

Answer 18

Anything used to satisfy wants or needs

Question 19

Labor consists of

Answer 19

Paid work

Physical intellectual

Question 20

What is real capital

Answer 20

Can produce something directly with them

Tools, machinery, factories

Question 21

Financial capital

Answer 21

Stocks bonds money

Cannot produce something directly

Question 22

Capital resources

Answer 22

Man made inputs used in production

Question 23

Capital goods

Answer 23

Used to produce other goods

Question 24

Consumer goods

Answer 24

For immediate consumption

Question 25

Economics definition

Answer 25

Science of scarcity

Social science concerned with the efficient use of scarce resources to achieve max. Satisfaction of economic wants