Econ Concepts # 1 Quiz

the social science that deals with how people and societies make decisions to satisfy unlimited wants with the use of limited resources.

• Microeconomics

• Macroeconomics

• Positive economics

• Economics

The study of the behavior of individual players such as individuals, families, and businesses in an economy

• Microeconomics

• Macroeconomics

• Positive Economics

• Normative Economics

The study of the behavior of the economy as a whole; concerned with large scale economic activity

• Microeconomics

• Macroeconomics

• Positive Economics

• Normative Economics

the fundamental economic problem arising from the fact that, while resources are finite, society’s demands for resources is infinite.

• Shortage

• Surplus

• Scarcity

• Deficit

the alternative given up when making a choice

• Trade-off

• Opportunity Cost

• Marginal Benefit

• Marginal Cost

the value associated with something given up in order to get something else desired.

• Trade-off

• Opportunity Cost

• Marginal Benefit

• Marginal Cost

a way of explaining or describing economics as it is, using verifiable facts.

• Positive Economics

• Normative Economics

• Macroeconomics

• Microeconomics

a way of describing economics using value judgements, explaining economics as it “ought to be”.

• Positive Economics

• Normative Economics

• Microeconomics

• Macroeconomics

 a visualization that demonstrates the most efficient production of a pair of goods. Each point on the curve shows how much of each good will be produced when resources shift to making more of one good and less of another

• Production Possibilities Curve

• Supply Curve

• Demand Curve

• Equilibrium Curve

producing the maximum amount of goods and services possible

• Efficiency

• Underutilization

• Maximum Production

• Cost-effectiveness