Econ 204 Test 1

The study of the choices people make to attain their goals, given their scarce resources.

the study of the economy as a whole, including topics such as inflation unemployment and economic growth

the study of how households and firms make choices how they interact in the markets and now the government attempts to influence their choices

analysis concerned with what ought to be

analysis concerned with what is

group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade

the highest valued alternative that must be given up to engage in an activity

a situation in which unlimited wants exceed the limited resources available to fulfill those wants

a simplified version of reality used to analyze real world economic situations

analysis that involves comparing marginal benefits and marginal costs

a model that illustrates how participants in markets are linked

the ability of an individual a firm or country to produce a good or service at a lower opportunity cost than competitor

the ability of the economy to increase the production of goods and services

the inputs used to make goods and services

a curve showing the max attainable combinations of two products that may be produced with available resources and current technology

the rights individuals or firms have to the exclusive use of the their property including the right to buy or sell it.

• We have limited resources not really a need  
• TF Question

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Normative and Positive analysis

shouldve couldve wouldve is a normative statement