Fundamentals LearnSmart

The earliest two fundamental steps in learning the economic way of thinking are understanding: (Answer all that apply)

how people make choices and how resources and scarcity affect the costs and benefits of choices

Economics is about:

how people make choices in a world of scarcity.

The earliest two fundamental steps in learning the economic way of thinking are understanding: (Answer all that apply)

how resources and scarcity affect the costs and benefits of choices; how people make choices.

The study of ____________ deals with how the whole economy can be affected by important national and global events, such as wars and natural disasters. (Remember, enter only one word in the blank.)

macroeconomics

When someone compares marginal benefits associated with an activity to its marginal costs, that person is making a ______________ decision.

marginal

Labor as a resource is defined as all _______ and _______ activity devoted to producing goods and services. (Use one word for each blank)

physical; mental

The production possibilities frontier, or curve, is a graphical representation of the

production possibilities schedule.

The marginal cost of an activity can be found by calculating the change in:

total costs as the level of the activity increases by one unit.