Economics Test 1

Front

Scarcity

Back

We have unlimited wants but limited resources.

Front

Economics is the study of…

Back

choices

Front

The crucial problem of economics is...

Back

allocating scarce resources to satisfy wants

Front

Economics

Back

Social concerned with use of scarce resource to achieve max satisfaction.

Front

Microeconomics

Back

Study of small economic units such as individuals, firms, and industries.

Front

Macroeconomics

Back

Study of the large economy as a whole or economic aggregates.

Front

What is a trade off?

Back

All the alternatives that we give up whenever we choose one course of action over others.

Front

What is opportunity cost?

Back

The most desirable alternative given up as a result.

Front

What is Accounting cost?

Back

Accountants look at only EXPLICIT COSTS.

Front

What is Economic cost?

Back

Economists look at the EXPLICIT COSTS and the OPPORTUNITY COSTS.