Chapter 2: Discipline of Economics

Refurbishment schemes

________ can cause a decrease in the prices of second- hand phones.

David Ricardo

Coined by ________ in the 1800s, comparative advantage means the ability of one country /nation to produce goods /services at a lower opportunity cost than another country /nation.

basic concept of scarcity

The need to allocate and organize resources is derived from the ________ which exists.

Macroeconomics

________: with ________, we consider the big picture- the nations economy as a whole.

Capital

________: A productive equipment or machinery (in economic terms only)

Focus

________ is directed at the roles households and firms play and how their decision- making and allocation of resources impact the overall economy.

Labor

________: All human attributes involved in a task, service, or function, that can play a role in the productivity of the process e.g.

Portugal

In terms of cloth, ________ has a lower opportunity cost than England.

natural resources

Land: All ________ in general including oceans, mineral deposits, crude oil, etc.

Absolute advantage

________ is producing goods /services more efficiently, using fewer inputs.

Trade

________ is based on comparative advantage, not absolute advantage.

Portugal

In terms of wheat, England has lower opportunity cost than ________.

Positive Economics

this approach to economics is based on facts and figures

Normative Economics

this approach to economics is based on assumptions

Labor

All human attributes involved in a task, service, or function, that can play a role in the productivity of the process e.g

Capital

A productive equipment or machinery (in economic terms only)