Pick up the Ch’s 1-2 Test Review from the black stand next to my desk and let’s get started.

Study of Scarcity and Choice 1) Economics Study of Scarcity and Choice

2) Utility Satisfaction.

The operation of self-interest in an economy. 3) The Invisible Hand The operation of self-interest in an economy.

When you give up something to get something else. 8) Trade Off When you give up something to get something else.

9) Productivity Output per man-hour

10) Positive Economics Branch of economic analysis that describes how the economy actually works.

11) Normative Economics Branch of economic analysis that prescribes how the economy should work.

Branch of economics concerned with individual decisions. 12) Microeconomics Branch of economics concerned with individual decisions.

13) Macroeconomics Branch of economics concerned with the overall ups and downs of the economy.

The technical means for the production of goods. 14) Technology The technical means for the production of goods.

15) Marginal Analysis Cost vs. benefit analysis of doing a little more or little less of an activity.

The rewards or punishment for doing or not doing something. 16) Incentives The rewards or punishment for doing or not doing something.