ECONOMICS: Introduction

3. The analysis of facts or data to establish scientific generalizations about economic behavior
5. The study how individuals and societies allocate their limited resources to satisfy their practically unlimited wants
7. The ability to take risk to combine economic resources to make new products or make innovations
9. The part of economics involving value judgments about what the economy should be
11. Man-made good used to produce other goods
13. Systems that bring buyers and sellers together to exchange goods and services
14. The part of economics concerned with the performance and behavior of the economy as a whole
15. A simplified diagrammatical or mathematical representation of a complex economic reality
17. The knowledge and skills that make a person productive
19. Non-material things which people derive a satisfaction (utility)
20. Human ability to produce
21. Natural resources
22. Physical(material) things from which people derive satisfaction (utility)
23. An assertion that can be tested and validated; it describes “what is”
25. The evaluation of whether the benefit of one more unit of something is greater than its cost

1. An outcome where allocation of resources maximizes total output
2. the highest-valued alternative that must be sacrificed to something else
4. the limiting of one’s work to a particular area
6. The four factors of production: land, labor, capital, and entrepreneurial ability
8. Factors that motive a person to act of exert effort
10. A statement that cannot be tested; it describes what “ought to be”
12. “Other things being equal,” the concept under which economists examine a change in one variable while holding everything else constant.
16. Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize net benefits
18. The part of economics concerned with decision making by individual units, such as a household, firm, or industry
24. a purposeful evaluation of the available opportunities to make the best decision possible