ECONOMICS VOCABULARY QUESTIONS AND GRADED
ANSWERS, 100% GUARANTEE
Scarcity - The resources we use to produce goods and services are limited.
Economics - The study of choices when there is scarcity.
Factors of Production - The resources used to produce goods and services; also known as
production inputs or resources
Natural Resources - Resources provided by nature and used to produce goods and
services.
Labor - Human effort, including both physical and mental effort, used to produce goods
and services.
Physical Capital - The stock of equipment, machines, structures, and infrastructure that if
used to produce goods and services.
Human Capital - The knowledge and skills acquired by a worker through education and
experience and used to produce goods and services.
Entrepreneurship - The effort used to coordinate the factors of production--natural
resources, labor, physical capital, and human capital--to produce and sell products.
Positive Analysis - Answers the question "What is?" or "What will be?"
Normative Analysis - Answers the question "What ought to be?"
, Economic Model - A simplified representation of an economic environment, often
employing a graph.
Variable - A measure of something that can take on different values.
Ceteris Paribus - The Latin expression meaning that the other variables are held fixed.
Marginal Change - A small, one-unit change in value.
Macroeconomics - The study of the nation's economy as a whole; focuses on the issues of
inflation,umemployment, and economic growth.
Microeconomics - The study of choices made by households, firms, and government and
how these choices affect the markets for goods and services.
Positive Relationship - A relationship in which two variables move in the same direction.
Negative Relationship - A relationship in which two variables move in the opposite
direction.
Slope of a Curve - The vertical difference between the two points (the rise) divided by the
horizontal difference (the run).
Opportunity Cost - What you sacrifice to get something.
Production Possibilities Curve - A curve that shows the possible combinations of products
that an economy can produce, given that its productive resources are fully employed and
efficiently used.
ANSWERS, 100% GUARANTEE
Scarcity - The resources we use to produce goods and services are limited.
Economics - The study of choices when there is scarcity.
Factors of Production - The resources used to produce goods and services; also known as
production inputs or resources
Natural Resources - Resources provided by nature and used to produce goods and
services.
Labor - Human effort, including both physical and mental effort, used to produce goods
and services.
Physical Capital - The stock of equipment, machines, structures, and infrastructure that if
used to produce goods and services.
Human Capital - The knowledge and skills acquired by a worker through education and
experience and used to produce goods and services.
Entrepreneurship - The effort used to coordinate the factors of production--natural
resources, labor, physical capital, and human capital--to produce and sell products.
Positive Analysis - Answers the question "What is?" or "What will be?"
Normative Analysis - Answers the question "What ought to be?"
, Economic Model - A simplified representation of an economic environment, often
employing a graph.
Variable - A measure of something that can take on different values.
Ceteris Paribus - The Latin expression meaning that the other variables are held fixed.
Marginal Change - A small, one-unit change in value.
Macroeconomics - The study of the nation's economy as a whole; focuses on the issues of
inflation,umemployment, and economic growth.
Microeconomics - The study of choices made by households, firms, and government and
how these choices affect the markets for goods and services.
Positive Relationship - A relationship in which two variables move in the same direction.
Negative Relationship - A relationship in which two variables move in the opposite
direction.
Slope of a Curve - The vertical difference between the two points (the rise) divided by the
horizontal difference (the run).
Opportunity Cost - What you sacrifice to get something.
Production Possibilities Curve - A curve that shows the possible combinations of products
that an economy can produce, given that its productive resources are fully employed and
efficiently used.
