Unit 1

Question 1

3 important questions economists ask:

Answer 1

What to produce? How to produce it? For whom to produce?

Question 2

Microeconomics

Answer 2

focuses on individual decision-making units and how they interact; it includes the study of individual markets and indiciduals in those markets

Question 3

Macroeconomics

Answer 3

explores the economy as a whole and how whole economies interact

Question 4

Scarcity

Answer 4

the fixed amount of goods or services available

Question 5

Traditional economy

Answer 5

an economic system in which traditions, customs, and beliefs help shape the goods and services the economy produces, as well as the rule and manner of their distribution also referred to as a subsistence economy, a traditional economy is defined by bartering and trading

Question 6

Command economy

Question 7

Market economy

Question 8

Mixed economy

Question 9

Opportunity cost

Question 10

Goods

Question 11

Services

Question 12

Util

Question 12

Endowment

Question 13

Utility

Question 14

Margin

Question 15

Marginal analysis

Question 16

Marginal utility

Question 17

Total utility

Question 18

Satiate

Question 19

Initial decision

Question 20

Bliss point

Question 21

Discounting the future

Question 22

Diminishing marginal productivity

Question 23

Balancing at the margin

Question 24

Social & economic goals

Question 24

Profit motive

Question 24

Consumer sovereignty

Question 24

Oligopoly

Question 24

Monopoly

Question 25

Government regulation

Question 26

Risk

Question 27

Specialization

Question 27

Monopsony

Question 28

Risk perception

Question 29

Division of labor

Question 30

Absolute advantage

Question 31

Unjust outcomes

Question 32

Comparative advantage

Question 33

Commutative justice

Question 34

Assumptions

Question 35

Market power

Question 36

Pareto Optimality

Question 37

Equal access to information

Question 37

Consumption

Question 38

Constrained Optimization Problem

Question 38

Strong assumptions

Question 38

Commodity money

Question 39

Fiat money

Question 40

Supply

Question 41

Demand

Question 42

Firm

Question 43

Factor markets

Question 44

Product markets

Question 45

Elasticity

Question 46

Inelastic

Question 47

Necessity

Question 48

Luxury

Question 49

Factors that determine inelasticity

Question 50

Measuring elasticity

Question 51

ϵ<1

Question 52

ϵ>1

Question 53

ϵ=0

Question 55

ϵ=1

Question 56

Unitary elasticity

Question 57

Total revenue

Question 58

Price sensitive

Question 59

Shift variable

Question 60

Price of related goods

Question 61

Complements

Question 62

Substitutes

Question 63

Cross price elasticity