Exam (elaborations)
Intro to Microeconomics questions & answers.
- Course
- Institution
Intro to Microeconomics questions & answers.
[Show more]
Seller
Follow
Content preview
Intro to Microeconomics questions &answers.
Define Economics ANS -the study of choice under conditions of scarcity
Define Scarcity ANS -a situation in which the amount of something available is insufficient to satisfy the
desire for it
What is Scarcity of Time? ANS -the limited number of hours in each day, the want to be in multiple
places at the same time, and that no one can exceed 24 hours in a day
What is Scarcity of Spending Power? ANS -the limited spending power (a budget constraint), can only
spend the money you have, have to make choices
Because of _____________ we have to make ____________. This involves ______________. ANS -
scarcity, choices, tradeoffs
Define Opportunity Cost ANS -What is given up when taking an action or making a choice; when you
choose one, you have to give up another one
Define Explicit Cost ANS -The dollars sacrificed - and actually paid out - for a choice, out of the pocket
expenses (what the person is spending)
Define Implicit Cost ANS -The value of something sacrificed when no direct payment is made
Define Resources ANS -The labor, capital, land (including natural resources), and entrepreneurship that
are used to produce goods and services
Define Labor ANS -The time human beings spend producing goods and services, working (getting paid
per hour)
, Define Physical Capital ANS -The part of the capital stock consisting of physical goods, such as
machinery, equipment, and factories
Define Human Capital ANS -The skills and training of the labor force
Define Capital Stock ANS -The total amount of capital in a nation that is productively useful at a
particular point in time
Define Land ANS -The physical space on which production takes place, as well as the natural resources
that come with it
Define Entrepreneurship ANS -The ability and willingness to combine the other resources - labor, capital
and land - into a productive enterprise
Define Input ANS -Anything (including a resource) used to produce a good or service
What produces goods and services directly? ANS -Resources
Define Microeconomics ANS -The study of the behavior of individual households, firms, and
governments; the choices they make; and their interaction in specific markets
Define Macroeconomics ANS -The study of the behavior of the overall economy
Define Positive Economics ANS -The study of how the economy works
Define Normative Economics ANS -The practice of recommending policies to solve economic problems
(value judgement: what should or ought to be, when "should", "ought", "the best way" is used)
Identify which of the four types of resources:
A computer used by an FBI agent to track the whereabouts of suspected criminals ANS -Physical Capital
(computer)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Professorkaylee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77851 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now