Microeconomics 1.1 and 1.2

Front

Study of the economy as a whole, or economic aggregates

Back

Macroeconomics

Front

Economic statements based on facts, which avoid value judgments

Back

Positive economics

Front

Which of the following is an example of a normative statement? Options: GDP decreased from 2019-2020, When government spending increases, standard of living increases, Raising the minimum wage will have negative effects on prices, The wealth gap has increased since the 1980's

Back

Raising the minimum wage will have negative effects on prices

Front

Thinking "at the margin" means making decisions so marginal benefit is _____ marginal cost

Back

greater than

Front

All the alternatives we give up when we make a choice

Back

trade-offs

Front

Which of the following is NOT a factor of production? Land, Capital, Financing, Labor

Back

Financing

Front

The most desirable alternative given up when we make a choice

Back

Opportunity Cost

Front

Types of goods created for direct consumption

Back

Consumer

Front

Types of goods that can be used to make consumer goods (ie: steel)

Back

Capital goods

Front

In the context of economics, "investment" refers to

Back

Money spent by firms to improve their production