Economics Terminology

Topics: Economics, Microeconomics, Tax Pages: 2 (325 words) Published: January 31, 2014
Which of the following is the best definition of economics? the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided

Opportunity cost is
that which we forgo, or give up, when we make a choice or a decision.
The reason that opportunity costs arise is that
resources are scarce.

If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $3000 this semester, then your opportunity cost of attending college this semester is

Costs that cannot be avoided, regardless of what is done in the future, because they have already been incurred are sunk cost

A market in which profit opportunities are eliminated almost instantaneously is an efficient market
The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units is

Inflation and unemployment
are a focus of macroeconomics.

Positive economics is an approach to economics that
applies statistical techniques and data to economic problems.
Health insurance should be provided to every citizen in a wealthy nation such as the United States. This statement is best described as
a normative statement.

Descriptive economics
mainly involves the compilation of data that describe phenomena and facts.
To isolate the impact of one single factor, economists invoke the assumption of ceteris paribus.

Redistribution of income from the rich to the poor is achieved from a tax system that requires taxes to rise with income. Which of the following criteria best explains the goal of this tax system? equity

It always rains about an hour after you finish washing your car. Concluding that washing your car caused it to rain is an example of the
post hoc, ergo...
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