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This review covers essential economic concepts crucial for understanding both micro and macroeconomic principles. Key topics include the study of scarcity and choice, utility and satisfaction, and the invisible hand of self-interest in markets. We explore trade-offs, productivity measures, and the distinctions between positive and normative economics. Additionally, we address the roles of microeconomics and macroeconomics, the importance of technology in production, marginal analysis in decision-making, and the impact of incentives on behavior. Get ready to deepen your understanding of economics!
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Pick up the Ch’s 1-2 Test Review from the black stand next to my desk and let’s get started.
1) Economics Study of Scarcity and Choice
2) Utility Satisfaction.
3) The Invisible Hand The operation of self-interest in an economy.
8) Trade Off When you give up something to get something else.
9) Productivity Output per man-hour
10) Positive Economics Branch of economic analysis that describes how the economy actually works.
11) Normative Economics Branch of economic analysis that prescribes how the economy should work.
12) Microeconomics Branch of economics concerned with individual decisions.
13) Macroeconomics Branch of economics concerned with the overall ups and downs of the economy.
14) Technology The technical means for the production of goods.
15) Marginal Analysis Cost vs. benefit analysis of doing a little more or little less of an activity.
16) Incentives The rewards or punishment for doing or not doing something.
