Terms : Hide Images
| 6183013567 | scarcity | the basic economic problem; it is a lack of needed or wanted resources relative to the demand for the resources. | 0 | |
| 6183013568 | TINSTAAFL | acronym for THERE IS NO SUCH THING AS A FREE LUNCH; means that there is always a cost for a product, even if it is not evident. | 1 | |
| 6183013569 | rational self-interest | individuals pursue actions that will enable them to achieve their greatest satisfaction | 2 | |
| 6183013570 | opportunity cost | what you give up when you make a choice | 3 | |
| 6183013571 | marginal analysis | comparisons of costs and benefits of creating one additional unit- or doing something one more time | 4 | |
| 6183013572 | ceteris paribus | other-things equal assumption; assumes that all other variables except those under immediate consideration are held constant | 5 | |
| 6183013573 | microeconomics | looks at specific economic units such as businesses and consumer behavior | 6 | |
| 6183013574 | macroeconomics | study of the economy as a whole, such as total output, total employment, total income, etc. | 7 | |
| 6183013575 | positive economics | states economics by facts,avoiding value judgements | 8 | |
| 6183013576 | normative economics | incorporates value judgements | 9 | |
| 6183013577 | utility | the pleasure, happiness, or satisfaction obtained from consuming a good or service. | 10 | |
| 6183013578 | factors of production | resources; includes land, labor, capital, and entrepreneurship. | 11 | |
| 6183013579 | command economy (socialism, communism) | system that relies on public ownership of resources and the use of central planning; government makes most economic decisions | 12 | |
| 6183013580 | market economy | private ownership of resources; markets and prices coordinate economic activity; government plays a role in the economy by providing rules, enforcing contracts, providing public goods | 13 | |
| 6183013581 | market economy | most economies today fall into this category | 14 | |
| 6183013582 | specialization | a process in which an individual or business completes one task repetitively and develops expertise in that task; increases productive efficiency | 15 | |
| 6183013583 | consumer goods | goods made for direct consumption | 16 | |
| 6183013584 | trade-offs | all possible options | 17 | |
| 6183013585 | PPC shifters | change in resource availability, change in technology or productivity, | 18 | |
| 6183013586 | production possibilities curve | a model showing the trade-offs between two economic choices; illustrates the concept of opportunity cost |  | 19 |
| 6183013587 | Mixed Economy | Market-based economic system with limited government involvement | 20 | |
| 6183013588 | Liquidity | A measure of how quickly an asset can be converted to into another asset (or used to buy hamburgers) | 21 | |
| 6183013589 | Interest rate | The % that a saver is paid OR the cost of borrowing | 22 | |
| 6183013590 | Cash | Most Liquid asset possible | 23 | |
| 6183013591 | CD | Financial asset, typically earning a higher interest rate than saving or checking account in exchange for being less liquid (pay a penalty for early withdrawal) | 24 | |
| 6183013592 | Bond | Certificate issued by a government or company promising to pay back a borrowed sum with interest- Represents an asset to the party that owns it, a liability to the group that issued it | 25 |
