Microeconomics Ch. 1

The cost of an item that you give up to get that item:

An example of a nonrenewable resource:

Land, labor, capital and entrepreneurship

People have to make choices because of

Labor

T/F: Association is the same as causation.

Your opportunity cost of going to a movie is

Best scarcity example?

The correct steps to making an economic model:

Father of Economics: (wrote Wealth of Nations in 1776)

When the market on its own fails to produce an efficient allocation of resources:

A general rise in prices:

T/F: Scarcity exists in every country, rich or poor.

Every public policy made promotes equality.

T/F: When talking about capital, we include money as this type of resource.

The division of economics that focuses on individual markets and business decision-making is

If Adam Smith were alive today, he would surely NOT have had the Uber app on his phone.

An example of Principle 3: "Rational people think at the margin."

Definition of economics

When you decide to study for tomorrow's test instead of going to the volleyball game, you are

Public policy MUST promote efficiency.

The fear of producing too much money by the Federal govt.

A computer is an example of

T/F: Scarcity means the desire for goods exceeds the amount available.

T/F: Wind is a natural resource.

If the marginal __________exceeds the marginal __________, a rational decision maker will take action

T/F The factors of production: Land, labor, capital

The ability to create a new product using a combination of the factors of production:

A division of economics that looks at the economy as a whole:

T/F: Scarcity is measured by the amount of goods available.

In the United States, average income doubles every

The study of economy-wide phenomena, such as borrowing by the federal government.

Competition is healthy for a market system.