Terms : Hide Images
| 828886376 | economics | Social science concerned with how individuals, institutions, and society make optimal (best) choices under the condition of scarcity | |
| 828886377 | scarcity | wants and needs > resources | |
| 828886378 | utility | the pleasure, happiness or satisfaction obtained from consuming a good or service | |
| 828886379 | marginal benefit | the additional benefit of consuming one extra of a good or sevice; marginal means additional | |
| 828886380 | marginal cost | the additional cost of producing an extra unit of a good or service | |
| 828886381 | microeconomics | part of economics concerned with individual units; small-scale view | |
| 828886382 | macroeconomics | examines the economy as awhole or its basic subdivisions or aggregates such as the government (G), households (counsumers-C), business sectors (Ib) or international trade (Ex-Im or Nx); broader view | |
| 828886383 | positive economics | focuses on facts, data and cause and effect relationships; "what is" | |
| 828886384 | normative economics | value judgments about the economy SHOULD be like; "what ought to be" | |
| 828886385 | trade-off | alt uses for resources or time | |
| 828886386 | opportunity cost | the value of what is lost when we make a choice about how to use a resource or time; not just money but opportunities lost | |
| 828886387 | factors of production | resources used to produce goods and services; land, labor, capital and entrepreneurship | |
| 828886388 | land | natural resources used to produce goods and services | |
| 828886389 | labor | human capital; human skills and abilities | |
| 828886390 | capital | resources (not money) that can be used to produce goods and services i.e. technology | |
| 828886391 | entrepreneurship | combine land, labor and capital in new ways to produce goods or services | |
| 828886392 | consumer | people who buy or use goods/services | |
| 828886393 | producers | people who produce goods/services | |
| 828886394 | consumption | the act done by the consumer | |
| 828886395 | investment | business buying capital, or inventories or people buying newly constructed houses; not money | |
| 828886396 | production possibilities curve/ frontier (PPC or PPF) | model of an economy which shows combinations of ONLY 2 goods that can be produced using scarce resources | |
| 828886397 | constant opportunity cost | when factors of production are perfectly substitutable for producting two goods | |
| 828886398 | increasing opportunity cost | when factors of production aren't perfectly substitutable for producting two goods | |
| 828886399 | allocative efficiency | the condition that is met when the marginal benefit of consuming something equals the marginal cost of producing it | |
| 828886400 | productive efficiency | producing at the lowest avg total cost; the condition that is met when producing on the PPC | |
| 828886401 | economic growth | an outward shift of the PPF that results from an increase in resource supplies or improvement in technology; permanent | |
| 828886402 | technology | body of knowledge and techniques that can be used to combine economic resources to produce goods and services | |
| 839494139 | command economy | an economy that relies on government to determine who gets what | |
| 839494140 | market | happens whenever producers and consumers come together to exchange goods and services | |
| 839494141 | market economy | an economy that relies on people motivated by their own self-interest to use markets to meet their needs and wants | |
| 839494142 | mixed economy | an economy that sometimes uses markets and sometimes government to determine how people's needs and wants are met | |
| 839494143 | circular flow model | illustrates the flow of goods and services, resources and money in a market economy; note the goods and services and resources flow one directiona nd the money flows the opposite direction | |
| 839494144 | resource/factor market | market where resources are bought and sold | |
| 839494145 | product market | market where goods and services produced by businesses are bought and sold | |
| 839494146 | households | people that provide the economy with factors of production in the resource market and purchase goods and services in the product market; consumers | |
| 839494147 | businesses/firms | purchase resources from the resource market to produce goods and services for the product market |
