pg 6-60 (microecon)

define economics

study of how individuals make choices about how to allocate scarce resources to satisfy unlimited wants and about how individuals interact with one another

what are the 5 assumptions economics relies on

scarcity, trade offs, opportunity cost, rationality, gains from trade

what 4 things does econ analysis rely on

careful observation, description, measurement of econ activity, theory

define positive economics

uses econ analysis to describe, explain, and predict econ phenomena by identifying cause & effect relationships and measuring their size

the avg supermarket carries about _____ items (BE EXACT)

31,530

f