What we give up to get something
Opportunity cost
This means that benefits are distributed
uniformly among society’s members
Equality
This means that the society has limited resources
and therefore cannot produce all the goods and
services people wish to have.
Scarcity
Production Possibilities Frontier assumes that all
inputs are efficiently used
True
This school of ideas became influential during the
1970s and early 1980's
New Keynesia
1. Normative statements are claims that attempt
to describe the world as it is
False
This means the ability of an individual to own and
exercise control over scarce resources
Property Rights
A graph that shows the combination of output
that the can possibly produce given the available
factors of production and technology is called
Production Possibilities frontier
Whenever resources are particularly scarce,
demand exceeds supply and
Driven up
The movement of demand curve is typically
Downward slope
According to them, self interest which governs
micro-economic behavior does not always lead to
long run economic stability
Keynesian
The increase in the overall level of prices in the
economy is called
Inflation
This acts as a powerful invisible hand to allocate
resources to where they are best employed.
Price mechanism
"Oikonomos" is a Greek word which means
One who manages the house
It deals with the individual components of the
economy
Microeconmics
This means that society is getting the maximum
benefits from its scarce resources
Efficiency
1. The Scottish political economist and
philosopher who became famous for his
influential book, The Wealth of Nations
Adam Smith
The impact of one's persons actions on the wellbeing of the bystander.
externality