Economics 1 Word Scramble

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Question	Answer
The social science concerned with how individuals, institutions and society make best choices under scarcity	Economics
exceeds society's productive capacity	Economic wants
A viewpoint that envisions individu-als and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions	Economic perspective
listed under economic perspective	Scarcity and choices, purposeful behavior, marginal analysis
resources are scarce(economic perspective)	Scarcity
what are the steps to the scientific method	observe real life behavior, formulate a hypothesis, test hypothesis, accept, reject or modify the hypothesis, continue to test hypothesis,
the part of economics concerned with decision making by individual units such as household, a firm, or an industry and individual markets, specific goods and services, and product and resource prices	microeconomics
the part of economics concerned with the performance and behavior of the economy as a whole. Focuses on economic growth, the business cycle, interest rates, inflation, and the behavior of major economic aggregates such as household business and sectors	macroeconomics
economics that focuses on facts and cause and effect relationships	positive economics
economics that includes description, theory development and theory testing	positive economics
economics that avoid value judgement It tries to establish scientific statements about eco-nomic behavior and deals with what the economy is actually like. Such scientific-based analysis is critical to good policy analysis.	positive economics
which incorporates value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desir-able goal. looks at the desirability of certain aspects of the economy.	normative economics
It underlies expressions of support for particular economic policies.	normative economics
Positive economics concerns what is, whereas norma-tive economics embodies subjective feelings about what ought to be . Examples: Positive statement: “The unemploy-ment rate in France is higher than that in the United States.” Normative statement:	positive and normative economics
“France ought to undertake policies to make its labor market more flexible to reduce unemployment rates.” Whenever words such as “ought” or “should” appear in a sentence, you are very likely encoun-tering a normative statement.	positive and normative economics
the need to make choices because economic wants exceed economic means—will enhance your understanding of economic models and the difference between micro-economic and macroeconomic analysis.	economizing problem
listed under the economizing problem	limited income, unlimited wants, budget line, attainable and unattainable combinations, trade offs and opportunity cost
his money! And the majority of us have much more lim-ited means. Our income comes to us in the form of wages, interest, rent, and profit, although we may also receive money from government programs or family members (economizing problem)	limited income
A line that shows the different combinations of two products a consumer can produce with a specific money income, given the products' prices	budget line
listed under society's economic problem	land, labor, capital and entrepreneurial ability
includes all natural resources (“gifts of nature”) used in the production process. These include forests, mineral and oil deposits, water resources, wind power, sunlight, and arable land.	land
consists of the physical ac-tions and mental activities that people contribute to the production of goods and services.	labor
includes all goods and services. Included are all factory, storage, trans-portation, and distribution facilities, as well as tools and machinery.	capital
the human resource that combines the other economic resources of land, labor, and capital to produce new products or make innovations in the production of existing products	entrepreneurial ability
takes the initiative in combining the resources of land, labor, and capital to produce a good or a service.	entrepreneur
makes the strategic business decisions that set the course of an enterprise.	entrepreneur
innovates, He or she commercializes new products, new production techniques, or even new forms of business organization.	entrepreneur
takes risks	entrepreneur
individuals who provide entrepreneurial ability to firms by setting strategy, advancing innovations, and bearing the financial risk if their firms do poorly.	entrepreneurs
lists the different combina-tions of two products that can be produced with a specific set of resources, assuming full employment.	productive possibility model
As more of a particular good is produced, its marginal opportunity costs increase	law of increasing opportunity cost
The limits placed on the amounts and types of goods and services available for consumption as the result of there being only limited economic resources from which to produce output;	scarcity
the fundamental economic constraint that creates opportunity costs and that necessitates the use of marginal analysis ( cost-benefit analysis ) to make optimal choices.	scarcity
restricts options and demands choices. Because we “can’t have it all,” we must decide what we will have and what we must forgo.	scarcity
that “there is no free lunch.” You may be treated to lunch, making it “free” from your perspective, but someone bears a cost. Because all resources are either privately or collectively owned by members of society, ultimately society bears the cost.,	scarcity
The amount of other products that must be forgone or sacrificed to produce a unit of a product.	opportunity cost under scarcity
the pleasure, happiness, or satisfac-tion obtained from consuming a good or service	utility (purposeful behavior)
rational self-interest	purposeful behavior
individuals and utility	purposeful behavior
firms and profit, business decides what products to produce and how to produce them, government deals with finance	purposeful behavior
desire outcome	purposeful behavior
comparisons of marginal benefits and marginal costs, usually for decision making	marginal analysis
benefit is the perceived lifetime pleasure (utility) from the larger-size stone. If the marginal benefit of the larger diamond exceeds its marginal cost (and you can afford it), buy the larger stone.	marginal benefit
But if the marginal cost is more than the marginal benefit, you should buy the smaller diamond instead—even if you can afford the larger stone!	marginal benefit
marginal means what	extra
Economic principles are generalizations relating to economic behavior orto the economy itself. Economic principles are expressed as the tendencies of typical or average consumers, workers, or business firms.	generalizations
listed under economic principle	generalization, other things equal assumption, graphical expression
the assumption that factors other than those being considered do not change. They assume that all vari-ables except those under immediate con-sideration are held constant for a parti-cular analysis.	other-things-equal-assumption
the determining variable is called	independent variable=x
the variable is determined is called	dependent variable=y
infinity slope is
economic resources are the natural human and manufactured to produce goods and services
Because economic resources are used to produce goods and services, they are called	factors of production or inputs
Money is not considered a capital resource because money is	not productive
Why is entrepreneurial ability distinct from labor even though both are considered as a category of economic resource?	Because entreprenuerial ability is not directly engaged in production.
The marginal benefit curve is	downward
the marginal cost curve is	upward
With these curves, the optimal allocation of resources to a particular product will occur when	MB=MC
current output is such that marginal cost exceeds marginal benefit, should more or fewer resources be allocated to this product?	fewer
In a command economy scarce goods are allocated by

Created by: Phole101