FTC1-WGU
All chapters and definitions you need to know to pass exam! :)
# Term Definition
1 The condition that arises because Scarcity
wants exceed the ability of
resources to satisfy them (our
inability to satisfy all our wants)?
2 The social science that studies Economics
the choices that individuals,
businesses, governments, and
entire societies make as they
cope with scarcity, the incentives
that influence those choices, and
the arrangements that
coordinate them?
3 The study of the choices that Microeconomics
individuals and businesses make
and the way these choices
interact and are influenced by
governments?
4 The study of the aggregate (or Macroeconomics
total) effects on the national
economy and the global
economy of the choices that
individuals, businesses, and
governments make?
5 Objects and actions that people Goods and services
value and produce to satisfy
human wants?
6 Objects that satisfy wants? Goods
Running shoes and ketchup are
examples.
7 Actions that satisfy wants? Services
Haircuts and rock concerts are
examples.
8 The choices that are best for the Self-interest
individual who makes them?
9 The choices that are best for Social interest
society as a whole?
,FTC1-WGU
# Term Definition
10 The social interest has what two efficiency and equity
dimensions?
11 What are the six ideas that define 1. A choice is a tradeoff, 2. People make rational
the economic way of thinking? choices by comparing benefits and costs, 3.
Benefit is what you gain from something, 4.
Cost is what you must give up to get something,
5. Most choices are "how much" choices made
at the margin, and 6. Choices respond to
incentives
12 An exchange—giving up one Tradeoff
thing to get something else?
13 A choice that uses the available Rational choice
resources to best achieve the
objective of the person making
the choice?
14 We make rational choices by benefits and costs
comparing?
15 The gain or pleasure that Benefit
something brings?
16 Economists measure benefit as? the most that a person is willing to give up to
get something
17 The best thing you must give up Opportunity cost
to get something?
18 A choice that is made by Margin
comparing all the relevant
alternatives systematically and
incrementally?
19 The opportunity cost that arises Marginal Cost
from a one-unit increase in an
activity. It is what you must give
up to get one additional unit of
it?
,FTC1-WGU
# Term Definition
20 The benefit that arises from a Marginal benefit
one-unit increase in an activity. It
is measured by what you are
willing to give up to get one
additional unit of it?
21 What is a fundamental feature of it diminishes
marginal benefit?
22 A reward or a penalty—a "carrot" Incentive
or a "stick"—that encourages or
discourages an action?
23 A central idea of economics is choices change
that by observing changes in
incentives, we can predict how?
24 A commonsense way of the scientific method
systematically checking what
works and what doesn't work?
25 A description of some feature of Economic model
the economic world that includes
only those features assumed
necessary to explain the
observed facts?
26 A situation that arises in the natural experiment
ordinary course of economic life
in which the one factor of
interest is different and other
things are equal (or similar)?
27 The tendency for the values of Correlation
two variables to move together
in a predictable and related way?
28 Disagreements that can't be Normative statements
settled by facts? Statements
about what ought to be, depend
on values and cannot be tested.
It doesn't assert a fact that can
be checked. Economists as social
scientists try to steer clear of
these statements.
, FTC1-WGU
# Term Definition
29 Disagreements that can be Positive statements
settled by facts? Statements
about what is. It might be right
or wrong and we can discover
which by careful observation of
facts. It could be right or wrong,
and it can be tested.
30 A graph of the value of one Scatter diagram
variable against the value of
another variable?
31 A graph that measures time on Time-series graph
the x-axis and the variable or
variables in which we are
interested on the y-axis?
32 A general tendency for the value Trend
of a variable to rise or fall?
33 A graph that shows the values of Cross-section graph
an economic variable for
different groups in a population
at a point in time?
34 A relationship between two Positive relationship or direct relationship
variables that move in the same
direction?
35 A relationship that graphs as a Linear relationship
straight line?
36 A relationship between two Negative relationship or inverse relationship
variables that move in opposite
directions?
37 Equals the change in the value of Slope
the variable measured on the
y-axis divided by the change in
the value of the variable
measured on the x-axis?
38 To graph a relationship that the ceteris paribus assumption
involves more than two variables,
we use assumption?
All chapters and definitions you need to know to pass exam! :)
# Term Definition
1 The condition that arises because Scarcity
wants exceed the ability of
resources to satisfy them (our
inability to satisfy all our wants)?
2 The social science that studies Economics
the choices that individuals,
businesses, governments, and
entire societies make as they
cope with scarcity, the incentives
that influence those choices, and
the arrangements that
coordinate them?
3 The study of the choices that Microeconomics
individuals and businesses make
and the way these choices
interact and are influenced by
governments?
4 The study of the aggregate (or Macroeconomics
total) effects on the national
economy and the global
economy of the choices that
individuals, businesses, and
governments make?
5 Objects and actions that people Goods and services
value and produce to satisfy
human wants?
6 Objects that satisfy wants? Goods
Running shoes and ketchup are
examples.
7 Actions that satisfy wants? Services
Haircuts and rock concerts are
examples.
8 The choices that are best for the Self-interest
individual who makes them?
9 The choices that are best for Social interest
society as a whole?
,FTC1-WGU
# Term Definition
10 The social interest has what two efficiency and equity
dimensions?
11 What are the six ideas that define 1. A choice is a tradeoff, 2. People make rational
the economic way of thinking? choices by comparing benefits and costs, 3.
Benefit is what you gain from something, 4.
Cost is what you must give up to get something,
5. Most choices are "how much" choices made
at the margin, and 6. Choices respond to
incentives
12 An exchange—giving up one Tradeoff
thing to get something else?
13 A choice that uses the available Rational choice
resources to best achieve the
objective of the person making
the choice?
14 We make rational choices by benefits and costs
comparing?
15 The gain or pleasure that Benefit
something brings?
16 Economists measure benefit as? the most that a person is willing to give up to
get something
17 The best thing you must give up Opportunity cost
to get something?
18 A choice that is made by Margin
comparing all the relevant
alternatives systematically and
incrementally?
19 The opportunity cost that arises Marginal Cost
from a one-unit increase in an
activity. It is what you must give
up to get one additional unit of
it?
,FTC1-WGU
# Term Definition
20 The benefit that arises from a Marginal benefit
one-unit increase in an activity. It
is measured by what you are
willing to give up to get one
additional unit of it?
21 What is a fundamental feature of it diminishes
marginal benefit?
22 A reward or a penalty—a "carrot" Incentive
or a "stick"—that encourages or
discourages an action?
23 A central idea of economics is choices change
that by observing changes in
incentives, we can predict how?
24 A commonsense way of the scientific method
systematically checking what
works and what doesn't work?
25 A description of some feature of Economic model
the economic world that includes
only those features assumed
necessary to explain the
observed facts?
26 A situation that arises in the natural experiment
ordinary course of economic life
in which the one factor of
interest is different and other
things are equal (or similar)?
27 The tendency for the values of Correlation
two variables to move together
in a predictable and related way?
28 Disagreements that can't be Normative statements
settled by facts? Statements
about what ought to be, depend
on values and cannot be tested.
It doesn't assert a fact that can
be checked. Economists as social
scientists try to steer clear of
these statements.
, FTC1-WGU
# Term Definition
29 Disagreements that can be Positive statements
settled by facts? Statements
about what is. It might be right
or wrong and we can discover
which by careful observation of
facts. It could be right or wrong,
and it can be tested.
30 A graph of the value of one Scatter diagram
variable against the value of
another variable?
31 A graph that measures time on Time-series graph
the x-axis and the variable or
variables in which we are
interested on the y-axis?
32 A general tendency for the value Trend
of a variable to rise or fall?
33 A graph that shows the values of Cross-section graph
an economic variable for
different groups in a population
at a point in time?
34 A relationship between two Positive relationship or direct relationship
variables that move in the same
direction?
35 A relationship that graphs as a Linear relationship
straight line?
36 A relationship between two Negative relationship or inverse relationship
variables that move in opposite
directions?
37 Equals the change in the value of Slope
the variable measured on the
y-axis divided by the change in
the value of the variable
measured on the x-axis?
38 To graph a relationship that the ceteris paribus assumption
involves more than two variables,
we use assumption?
