Praxis II 5081 Economics Study Guide

Adam Smith CORRECT ANSWER Considered to be the founder of ecomonics Wealth of Nations CORRECT ANSWER published in 1776; analysis of a market economy Equity CORRECT ANSWER society wants distribution of goods and services to conform with the notion of "fairness". Classical, Keynesian,Monetary,and Neoclassical CORRECT ANSWER The four general view points about the workings of markets is? Microeconomics CORRECT ANSWER The study of the individual parts that make up the economy, includes households, business firms, and government agencies. Macroeconomics CORRECT ANSWER The study of the economy as a whole, considers inflation, unemployment, and economic growth. Scarcity CORRECT ANSWER Human wants and needs exceed the ability of the economy to satisfy those wants and needs. Rational Behavior CORRECT ANSWER That given a person's goals and knowledge, people take actions likely to achieve those goals and avoid actions likely to detract from those goals. Marginal Analysis CORRECT ANSWER Assume that people make choices by weighing the cost and benefits of particular actio