Pre_Test (Applied Economics) Q2

It is the study of the trade-offs and choices that we make, given the fact of scarcity.

• Economics 

• Free Goods

• Opportunity cost

• Scarcity 

It is inputs used in the production of goods and services to make a profit: land, economic capital, labor, and entrepreneurship; also called “factors of production”

• Economic Goods

• Free Goods

• Opportunity cost

• Productive Resources

It refers to any human service physical or intellectual. Also referred to as human capital.

• Economic capital

• Labor

• Entrepreneurship

• Land

It refers to natural resource, including actual land, but also trees, plants, livestock, wind, sun, water, etc.

• Economic capital

• Labor

• Entrepreneurship

• Land

It deals with anything that’s manufactured in order to be used in the production of goods and services.

• Economic capital

• Labor

• Entrepreneurship

• Land

It is the ability of someone (an entrepreneur) to recognize a profit opportunity, organize the other factors of production, and accept risk.

• Economic capital

• Labor

• Entrepreneurship

• Land

It is the branch of economics that focuses on actions of particular agents within the economy, like households, workers, and businesses. We learn about the theory of consumer behavior and the theory of the firm.

• Economics

• Macroeconomics

• Microeconomics

• Economic Goods

It indicates that two variables are positively related; when one variable increases, so does the other, and when one variable decreases, the other also decreases.

• Positive slope

• Slope of zero

• Negative slope

• Slope

It indicates that there is a constant relationship between two variables: when one variable changes, the other does not change. 

• Positive slope

• Slope of zero

• Negative slope

• Slope

It indicates that two variables are negatively related; when one variable increases, the other decreases, and when one variable decreases, the other increases.

• Positive slope

• Slope of zero

• Negative slope

• Slope