University of Virginia

Economics - Answer The study of how human beings coordinate their wants and desires given the decision-making mechanisms, social customs, and political realities of the society. The Three Central Problems - Answer 1. What, and how much to produce 2. How to produce it 3. For whom to produce it Scarcity - Answer The goods available are too few to satisfy individuals' desires Coercion - Answer How to deal with scarcity: limiting people's wants and increasing the amount ...

economic decision rule - Answer if the marginal benefits of doing something exceed the marginal costs, do it. If the marginal costs of doing something exceed the marginal benefits, don't do it. economic force - Answer the necessary reaction to scarcity economic model - Answer a framework that places the generalized insights of a theory in a more specific contextual setting economic policy - Answer an action (or inaction) taken by government to influence economic actions ...

Economics - Answer The study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. Coordination problems - Answer 1. What, and how much, to produce. 2. How to produce it. 3. For whom to produce it. scarcity - Answer the goods available are too few to satisfy individuals' desires, degree of this is constantly changing--economy deals with this via coercion coercion - Answer lim...

Which of the following is NOT an assumption of perfectly competitive markets? a) many buyers and many sellers b) no restriction on entry c) complete information about prices d) new entrants have higher costs - Answer d) new entrants have higher costs Perfect competition is a market in which... - Answer Perfect competition is a market in which ■ Many firms sell identical products to many buyers. ■ There are no restrictions on entry into the market. ■ Established firms h...

utility - Answer the pleasure or satisfaction people get from doing or consuming something total utility - Answer the total satisfaction one gets from consuming a product marginal utility - Answer the additional satisfaction one gets from consuming an additional unit of a product above and beyond what has already been consumed up to this point principle of diminishing marginal utility - Answer as you consume more of a good, after some point, the marginal utility received fro...

Positive vs. normative - Answer Positive is how it "is", normative is "should" What fact of life is the reason we have the discipline of economics? - Answer Scarcity Economics is the science of ______________ - Answer choice Difference between economics and sociology - Answer Economics is how people make choices, sociology considers lack of choices 2 examples of a financial penalty - Answer Rated fine, and a lump-sum fine School principal lump sum vs rat...

A labor market in which the top income recipients are paid many times more than other employees or labor inputs is called a(n) a. unionized market. b. oligopoly market. c. imperfectly competitive market. d. cartel with free rider (or cheater). e. tournament market. - Answer E An entrepreneur is a(n) a. individual who has more education. b. organizer who seeks profitable opportunities and is willing to accept risks. c. business organization involved in using inputs to produce ...

Scarcity - Answer the limited nature of society's resources Economics - Answer the study of how society manages its scarce resources 1st Principle of Economics - Answer people face tradeoffs 2nd Principle of Economics - Answer the cost of something is what you give up to get it Oppurtunity Cost - Answer whatever must be given up to obtain a certain item 3rd Principle of Economics - Answer rational people think at the margin rational people - Answer peo...

The short run is a period of time during which all resources may be varied during which all resources are fixed during which at least one resource is fixed equal to or less than six months - Answer during which at least one resource is fixed Cash payments for steel to be used in production would be an example of entrepreneurial costs implicit costs sunk costs explicit costs - Answer explicit costs If a firm triples all of its inputs and its outputs doubles, i...

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