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Economics Exam 1
Question | Answer |
---|---|
Define Economics | A social science that deals with the choices of people faced with scarcity. |
Three interrelated features of the economic perspective. | Scarcity and Choice, Rational Behavior, and Marginal Benefit vs Marginal Cost |
"There's No Such Thing As A Free Lunch means... | To have a free lunch, you must first give up time that you could have spent being productive. i.e. opportunity cost. |
Microeconomics vs Macroeconomics | Micro= Small economics like Florida compared to the United States. Macro= Larger scale. |
Positive vs Normative statements. | Positive= Facts Normative= Opinions |
Four Factors of Production | Land(Lumber), Labor(Workers), Capital(Equipment, Specialists), and Entrepreneurial Ability (Inventors and Innovators). |
Marx, Keyens, and Smith | Marx= Developed the social theory of capitalism Keynes= C+I+G=Y -- Spend your money Smith= Father of economics. Lassaiz-faire theory |
Ceteris peribus assumption means what? | Used to simplify the formulation of economic outcomes. |