ECON 2030 Charles Roussel Exam 1 | QUESTIONS
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Terms in this set (91)
Economics the study of how human beings coordinate their
wants and desires, given the decision-making
mechanisms, social customs, and political realities
of the society.
_____________ refers to how the three Coordination
central problems facing any
economy are solved.
The three central problems facing 1. What, and how much, to produce
any economy: 2. How to produce it
3. For whom to produce it
The quantity of goods, services, and The quantity of goods, services, and usable
usable resources depends on resources depends on technology and human
______________ and __________ ____________. action.
,1. Microeconomics is the study of 1. Microeconomics is the study individual choice,
___________________... and how that choice is influenced by economic
forces.
2. Microeconomics theory considers
economic reasoning from the 2. Microeconomics theory considers economic
viewpoint of ____________..... and reasoning from the viewpoint of individuals and
________________.... firms and builds up to an analysis of the whole
economy.
3. Microeconomics studies such
things as: 3. Microeconomics studies such things as:
a. The ___________ ___________ of firms, a. the pricing policies of firms,
b. ______________ decisions on ______ ___ b. households' decisions on what to buy,
_______, c. and how markets allocate resources among
c. and how markets ___________ ____________ alternative ends.
among _____________ ___________.
1. Macroeconomics involves first 1. Macroeconomics involves first looking at the
looking at the _______________, or ____________, aggregate, or whole, then breaking it down into
then ________________________________. components.
2. Macroeconomics is the study of 2. Macroeconomics is the study of the economy as
the ______________ as __________. It considers a whole. It considers the problems of:
the problems of: a. inflation
a. __________ b. unemployment
b. __________ c. business cycles
c. __________ d. growth
d. __________
_________________ focuses on ___________ Macroeconomics focuses on aggregate
relationships such as how household relationships such as how household consumption
consumption is related to income is related to income and how government policies
and how government policies can can affect growth.
affect growth.
, Economic reasoning is making Economic reasoning is making decisions on the
decisions on the basis of ________ and basis of costs and benefits.
_________.
What does TANSTAAFL stand for? There Ain't No Such Thing As A Free Lunch
What is the economic decision rule? Economic decision rule:
If the marginal benefits of doing something
exceed the marginal costs, do it. (and vice versa)
Economic reasoning is based on the Economic reasoning is based on the premise that
premise that ________________________________. everything has a cost.
Opportunity cost is: Opportunity cost is the benefit that you might
have gained from choosing the next-best
alternative; it is the basis of cost/benefit economic
reasoning.
________________ is the basis of Opportunity cost is the basis of cost/benefit
cost/benefit economic reasoning. economic reasoning.
Market A market is a social process (people interacting) in
which goods and services are exchanged for
money. The buyer and seller ALWAYS give AND
receive.
Economic forces Economic forces are the necessary reactions to
scarcity.
AND ANSWERS | LATEST UPDATE | INSANT
DOWNLOAD
Save
Terms in this set (91)
Economics the study of how human beings coordinate their
wants and desires, given the decision-making
mechanisms, social customs, and political realities
of the society.
_____________ refers to how the three Coordination
central problems facing any
economy are solved.
The three central problems facing 1. What, and how much, to produce
any economy: 2. How to produce it
3. For whom to produce it
The quantity of goods, services, and The quantity of goods, services, and usable
usable resources depends on resources depends on technology and human
______________ and __________ ____________. action.
,1. Microeconomics is the study of 1. Microeconomics is the study individual choice,
___________________... and how that choice is influenced by economic
forces.
2. Microeconomics theory considers
economic reasoning from the 2. Microeconomics theory considers economic
viewpoint of ____________..... and reasoning from the viewpoint of individuals and
________________.... firms and builds up to an analysis of the whole
economy.
3. Microeconomics studies such
things as: 3. Microeconomics studies such things as:
a. The ___________ ___________ of firms, a. the pricing policies of firms,
b. ______________ decisions on ______ ___ b. households' decisions on what to buy,
_______, c. and how markets allocate resources among
c. and how markets ___________ ____________ alternative ends.
among _____________ ___________.
1. Macroeconomics involves first 1. Macroeconomics involves first looking at the
looking at the _______________, or ____________, aggregate, or whole, then breaking it down into
then ________________________________. components.
2. Macroeconomics is the study of 2. Macroeconomics is the study of the economy as
the ______________ as __________. It considers a whole. It considers the problems of:
the problems of: a. inflation
a. __________ b. unemployment
b. __________ c. business cycles
c. __________ d. growth
d. __________
_________________ focuses on ___________ Macroeconomics focuses on aggregate
relationships such as how household relationships such as how household consumption
consumption is related to income is related to income and how government policies
and how government policies can can affect growth.
affect growth.
, Economic reasoning is making Economic reasoning is making decisions on the
decisions on the basis of ________ and basis of costs and benefits.
_________.
What does TANSTAAFL stand for? There Ain't No Such Thing As A Free Lunch
What is the economic decision rule? Economic decision rule:
If the marginal benefits of doing something
exceed the marginal costs, do it. (and vice versa)
Economic reasoning is based on the Economic reasoning is based on the premise that
premise that ________________________________. everything has a cost.
Opportunity cost is: Opportunity cost is the benefit that you might
have gained from choosing the next-best
alternative; it is the basis of cost/benefit economic
reasoning.
________________ is the basis of Opportunity cost is the basis of cost/benefit
cost/benefit economic reasoning. economic reasoning.
Market A market is a social process (people interacting) in
which goods and services are exchanged for
money. The buyer and seller ALWAYS give AND
receive.
Economic forces Economic forces are the necessary reactions to
scarcity.
