Chapter 1 - The Art and Science of Economic Analysis

Human effort

________, both physical and mental, is defined as labor.

Microeconomics

________ is concerned with decisions made in families, firms, and governments, as well as how these decisions influence specific markets, such as the market for used automobiles.

Labor

________ is derived from a more basic resource called time.

scientific analysis

Economists employ ________ to create hypotheses or models that assist explain the economic activity.

malls

Supermarkets, department stores, shopping ________, and yard sales are all examples of marketplaces.

entrepreneurial aptitude

Labor, capital, natural resources, and ________ are the four basic kinds of resources.

Natural resources

________ are split into two categories: renewable and nonrenewable.

Economists

________ define rationality as people trying to make the best decisions they can given the time and knowledge they have.

Biological resources

________, in general, include Fish, game, cattle, woods, rivers, groundwater, grasslands, and soil are all renewable resources if they are managed properly appropriately managed.

Human capital

information and skills that individuals gain in order to boost their production, such as the surgeon's understanding of human anatomy, the cab driver's knowledge of city streets, and your understanding of economics

Entrepreneurial ability

imagination required to develop a new product or process, the skill needed to organize production, and the willingness to take the risk of profit or loss

Circular-flow model

diagram that traces the flow of resources, products, income, and revenue among economic decision-makers

Economic theory

simplification of economic reality that is used to make predictions about the real world