Chapter 1 Review

The branch of economics that studies the decisions made by individuals and firms is called macroeconomics.

In economics, capital is defined as a financial asset like stocks and bonds.

Economists use the word utility to describe the satisfaction one receives from a good.

Which of the following is not one of the four broad categories of resources (FoP)?

Efficiency exists when marginal benefit equals marginal cost.

Entrepreneurship consists of physical/mental talents that people contribute to production. It makes production possible.

Price is a rationing device.

Scarcity affects everyone, even billionaires.

The study of "what is" in economics