Microeconomics Chapter 1 Flashcards
Microeconomics Chapter 1
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| 1514241886 | Scarcity | The limited nature of society's resources. | 1 | |
| 1514241887 | Economics | The study of how society manages its scarce resources. | 2 | |
| 1514241888 | Efficiency | The property of society getting the most it can from scarce resources. | 3 | |
| 1514241889 | Equality | The property of distributing economic prosperity uniformly among the members of society. | 4 | |
| 1514241890 | Opportunity Cost | Whatever must be given up to obtain some item. | 5 | |
| 1514241891 | Rational People | People who systematically and purposefully do the best they can to achieve their objectives. | 6 | |
| 1514241892 | Marginal Changes | The increase in output that arises from an additional unit of input. | 7 | |
| 1514241893 | Incentive | Something that induces a person to act. | 8 | |
| 1514241894 | Market Economy | An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services. | 9 | |
| 1514241895 | Property Rights | The ability of an individual to own and exercise control over scarce resources. | 10 | |
| 1514241896 | Market Failure | A situation in which a market left on its own fails to allocate resources efficiently. | 11 | |
| 1514241897 | Externality | The uncompensated impact of one person's actions on the well-being of a bystander. | 12 | |
| 1514241898 | Market Power | The ability of a single economic actor (or small group of actors) to have substantial influence on market prices. | 13 | |
| 1514241899 | Productivity | The quantity of goods and services produced from each unit of labor input. | 14 | |
| 1514241900 | Inflation | An increase in the overall level of prices in the economy. | 15 | |
| 1514241901 | Business Cycle | Fluctuations in economic activity, such as unemployment and production. | 16 |