GAARC ME1 CH1
ME in E
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Lernkarten
Scarcity
Commodities and resources that we value are limited in supply.
Efficiency
Using the economy's resources as effectively as possible to satisfy people's need and desires.
Free goods
Commodities and resources that are available without limit.
Economic goods
Goods that we value that are limited in supply.
Macroeconomics
The branch of economics concerned with the overall performance of the economy.
Microeconomics
Branch of economics concerned with the behaviour of individual entities such as markets, firms, and households.
Normative economics
Involves value judgement and ethical precepts about an economy.
Positve economics
Describes the facts and behaviour of an economy.
Laissez-faire
A market economy in which the government has almost no role.
Inputs
Commodities or services, such as land, labor, or capital, that are used by firms in their production processes.
Outputs
Good and services that result from the production process.
Post hoc fallacy
Assuming that one event causes another simply because it happens first.
Fallacy of composition
Assuming that what is true for part of a system is also ture for the whole system.
Opportunity cost
Measurement of cost based on the value of the next-best forgone alternative.
Economics is concerned primarly with ______ .
the allocation of scarce resources
When Samuelson and Nordhaus write that "goods are limited while wants seem limitless," they mean that _____ .
there is no simple solution to the basic economics problems of scarcity and unlimited human wants.
The problem of failing to hold other things constant occurs when ______ .
many variables may change at the same time and you fail to adjust for the changes.
The three fundamental questions of economic organizations are _____ .
closely related to the concept of scarcity.
The economic problem of what goods to produce ____ .
can be illustrated as the problem of choosing a point on the production-possibility curve.
The economic problem of how to produce goods would not exist ______ .
if the required proportions of inputs were fixed for all commodities, so substitution of one input for another input in production would be impossible.
Capital is _____ .
both an input and an output.
