Nature of economics

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Across
  1. 3. A curve depicting the maximum potential output combinations of two goods an economy can produce given available resources.
  2. 4. Subjective, value-judgment statements that cannot be proven true or false (e.g."The government should increase taxes").
  3. 5. Objective, testable statements that can be proven true or false using data (e.g."Raising taxes increases revenue").
  4. 8. The value of the next best alternative foregone when a choice is made.
  5. 9. The basic economic problem; wants are unlimited, but resources (factors of production) are limited.
  6. 10. Resources are allocated through the price mechanism; no government intervention.
  7. 11. Resources are allocated by both the free market and government intervention.
Down
  1. 1. The study of how society allocates scarce resources to satisfy unlimited wants.
  2. 2. When individuals, firms, or economies concentrate on producing specific goods or services.
  3. 6. Output per unit of input (e.g., output per worker per hour).
  4. 7. Resources that can be replenished, such as solar power, if consumption is sustainable.