Economic basics

The three key economic questions are:

• What should be produced?

  How to produce?

  Who should we produce for?

• How to produce?

  How much do we make?

  What is my profit?

• Who should we produce for?

  What is my profit?

  What should we charge for the product?

• How much do we produce?

  Who should we produce for?

  What is the tax?

What's the difference between macroeconomics and microeconomics?

• Macroeconomics is the study of worldwide, national, or a region of economics while microeconomics is the study of individual market participants.

• Macroeconomics is the study of industrialized country's economies while microeconomics is the study of emerging economies.

• Macroeconomics studies the repeating patterns in economics while microeconomics studies one time anomalies.

• Macro economics is the study of all of the world's economies while microeconomics is only the study of the US economy.

What is economics?

• The study of a government's distribution of resources

• The study of consumers' spending habits

• The study of a society's allocation of resources

• The study of buying and selling in the stock market

Scarcity can best be defined as

• Scarcity can best be defined as

• Where demand is greater than supply

• Unlimited wants vs Limited resources

• Limited wants vs unlimited resources

 Which of the following resources would economists classify as “capital”?    

• Raw Bauxite in a South African mine

• A hammer used in framing a house

• A worker hired to repair engines

• Trees used tomake paper

 The major types of resources used to make a product are called  

• natural resources

• factors of reduction

• factors of production

• capital resources

________ are decisions we all must make due to scarcity.

• trade offs

• scarcity

• choice

• incentive

• want

• need

• want

• need

• want

• need