- •1.What kind of science is economics?
- •2. What does economics explain?
- •4. What economic issues do we meet with every day of our lives?
- •1.What is economics?
- •11. What do economists use to explain or describe the “world that is”?
- •17. Why does positive economics avoid value judgements?
- •18. Why do economists use positive economics?
- •22. Why can some economic issues never be decided by using facts?
- •1/ What are economic resources?
- •21. What factors of production are active (flexible) and passive (fixed)? Why?
- •1.What are the three basic economic questions that every society must answer?
- •2.What makes each society look for the answers to the basic economic questions?
- •3/ How does each society make its decisions to solve the problem of scarcity?
- •6/What does the Who question mean?
- •7/What is an economic system?
- •9/What is a traditional economy?
- •11/ Why are there few social changes within a traditional economy?
- •12/What is a command economy?
- •13/ Who makes decisions on the fundamental economic questions in a society with a command economy?
- •15/Why do the individuals have very little say as to how the basic economic questions are answered?
- •16/What is a market economy?
- •19What is a free enterprise system based on?
- •20/Who owns the means of production in a society with a market economy?
- •1. Why is the theory of supply and demand considered one of the most fundamental concepts of economics?
- •2. What is demand?
- •3. What factors alter consumer demand?
- •4. What goods are considered to be related?
- •8. What does the law of diminishing marginal utility explain?
- •9. What does the law of demand state?
- •7.What is a supply schedule?
- •8.What is a supply curve?
- •9.What does supply curve enable producers to anticipate?
- •10.What does each point along the curve represent?
- •21.How does the cost of production affect the behavior of producers?
- •24.How do future expectations affect the quantity supplied?
- •25.Why are profit opportunities considered as factors that influence the quantity supplied?
- •29.Why is elasticity important in understanding supply and demand theories?
- •31.When supply is elastic?
- •In a Market Economy
- •1.What is a price?
- •3.What is a price system?
- •12. What does the characteristic of perfect competition “no barriers to enter or exit the market” mean? .
- •7. What does legal tender mean?
- •25. What does the purchasing power of money mean?
- •8.What drawbacks do they have?
- •9.What is difference between credit and debit cards?
- •11.What is a charge account?
- •14.What is a consumer credit?
- •15.What does consumer credit provide?
- •17.What is a consumer loan?
- •21. Why is savings considered one of the ways of good money management?
- •23. What factors should be considered before staring any kind of savings program? 24. What does safety mean?
- •25. What is liquidity? •
- •29. What does the yield depend on?
- •30. What accounts are offered by depository institutions?
- •32. Why do some people put their money in savings accounts? •
- •35. Why do financial institutions charge the highest interest rates on cDs?
- •38. What steps should be taken to reach financial goals?
- •6. What is a sole proprietor responsible for?
- •15. What is a corporation?
- •16. What is the essential feature of a corporation?
- •17. Who owns a corporation?
- •23. Why does a corporation have a continuous existence?
- •27. What does double taxation refer to?
- •28. What are dividends?
- •29. What is the role of the board of directors?
11. What do economists use to explain or describe the “world that is”?
Economists have developed and generally agree on basic economic principles and economic models that try to explain or describe the “world that is”. In many cases, however, economic issues cannot be solved with theories and models alone. Solutions to these problems include opinions, politics, and personal values.
12. What is an economic model?
. Economic model: any simplified statement, diagram or formula used to understand economic events
13. Why is it impossible to solve economic issues economic theories and models alone?
In many cases, however, economic issues cannot be solved with theories and models alone. Solutions to these problems include opinions, politics, and personal values.
14. Why do economists make the positive-normative distinction?
Economists make a distinction between positive economics and normative economics. To the economists the positive-normative distinction is useful because it helps people with very different views about what is desirable to communicate with each other.
15. What is the difference between a positive economic statement and a normative one?
Positive economics: an economic analysis that is purely based on facts rather than opinions and studies why the economy operates as it does. Normative economics: an econo-mic analysis that includes value judgments about what ought to be done, rather than simply developing a theory.
16. What is positive economics concerned with? Positive economics looks at/on the facts and the economy as they actually are, avoiding value judgements* and attempting to seek scientific bases about economic activities. It is an approach that deals with “what is” rather than* with “what ought to be” and contains no indication of approval or disapproval. What are the causes of poverty in the country? What will be the effect of higher cigarette taxes on the number of smokers? These questions can be solved only on the basis of facts.
17. Why does positive economics avoid value judgements?
Positive economics looks at/on the facts and the economy as they actually are, avoiding value judgements* and attempting to seek scientific bases about economic activities
18. Why do economists use positive economics?
It is an approach that deals with “what is” rather than* with “what ought to be” and contains no indication of approval or disapproval. What are the causes of poverty in the country? What will be the effect of higher cigarette taxes on the number of smokers? These questions can be solved only on the basis of facts.
19. What does normative economics deal with? Normative economics, on the other hand, is concerned about what ought to be. It comprises ethical precepts and value judgments* about whether economic policies are good or bad.
20. What does normative economics include?
21. Why is normative economics used to take decisions as for issues of equity, equality, and fairness? Normative economics is used to take decisions as for issues of equity, equality, and fairness, since these concepts include judgments about what ought to be.