Terms : Hide Images
| 126353839 | Economics | Social science. Assumes infinite wants, but goods and services are limited, so that there are not enough resources to fulfill our wants. | |
| 126353840 | Rational Self Interest | People make decisions based on what is best for them. | |
| 126353841 | Scarcity | Resources are limited. | |
| 126353842 | Opportunity Cost | In order to get something I want, I must give up the ability to get something else. | |
| 126353843 | Marginal Analysis | Study of the change in decision making when the economy changes slightly. | |
| 126353844 | Ceteris Paribus | Assumes "all other things equal", making it possible to study economics. | |
| 126353845 | USA Economic Goals | Economic Growth, Full Employment, Economic Efficiency, Price Level Stability, Economic Freedom, Equitable Distribution of Money, Economic Security, Balance of Trade | |
| 126353846 | Trade Offs | Things/Goals we sacrifice in order to get something else. | |
| 126353847 | Macroeconomics | study of economics as a whole and basic subdivisions such as the government, households, and markets. | |
| 126353848 | Microeconomics | Study of specific, smaller units of the economy such as the price of one product of the output of one worker. | |
| 126353849 | Aggregate | Total | |
| 126353850 | Positive Economics | Focuses on facts that are currently testable. | |
| 126353851 | Normative Economics | Focuses on what the economy should or could be. | |
| 126353852 | Consumer Goods | Satisfy our immediate needs or wants. | |
| 126353853 | Capital Goods | Goods for the future. Ex: factory. | |
| 126353854 | Land | Natural resources such as forests and oil. | |
| 126353855 | Capital | Manufactured goods that aide in producing consumer goods. | |
| 126353856 | Investment | When capital is purchased. | |
| 126353857 | Labor | The physical and mental talents available in producing goods. | |
| 126353858 | Entrepreneurial Ability | Includes initiative, decision making, innovation, and risk bearing. | |
| 126353859 | FOP | Factors of Production/Inputs: Land, Capital, Labor, Entrepreneurial Ability | |
| 126353860 | Rental Income | Money received from supplying land(raw materials). | |
| 126353861 | Interest Income | Money received from renting machinery or capital(loaning money). | |
| 126353862 | Wages | Income from labor. | |
| 126353863 | Profit | Income from entrepreneurial ability. Can be negative. | |
| 126353864 | Full Employment | All Factors of Production are in use. | |
| 126353865 | Full Production | Achieving maximum output. | |
| 126353866 | Productive Efficiency | Production of goods in the least expensive way. | |
| 126353867 | Allocative Efficiency | Producing the right group of goods. | |
| 126358301 | PPF | Production Possibilities Frontier: Demonstrates that we must produce less of one good if we choose to produce more of another good. | |
| 126358302 | Underutilization | When a country is not fully employing its resources. | |
| 126358303 | Law of Increasing Opportunity Cost | The more of a product is produced, the greater the opportunity cost. | |
| 126358304 | Marginal Cost | Cost of producing one more unit. | |
| 126358305 | Marginal Benefit | Benefit of producing one more unit. | |
| 126358306 | Market System | Capitalism: Incorporates Rational Self Interest, Economic Freedom, competition for limited resources, and sometime "Laissez-faire". | |
| 126358307 | Command System | Socialism/Communism: Government decides how much and what to produce, and controls all Factors of Production. North Korea and Cuba. | |
| 126358308 | Circular Flow Model | Explains Market System. Resources are traded between Households, Resource Market, Businesses, and the Product Market. |
