AW- econ flashcards 1

Question 1

Endowment

Answer 1

natural and human resources from which all goods and services must be produced
-finite, but not fixed (scarcity)

Question 2

Utility

Answer 2

satisfaction; economists assume maximizing this drives individual choice; measured in utils

Question 3

Profit motive

Answer 3

the tendency of people to engage in activities that will lead to monetary gain

Question 4

Consumer sovereignty

Answer 4

the economic power of the individual in a free market

Question 5

Government regulation

Answer 5

requirements the government places on private firms and individuals to achieve the government’s goals

Question 6

Social & economic goals

Answer 6

Freedom
Security
Equity
Growth
Efficiency
Stability

Question 7

Marginal utility

Answer 7

additional increment of utility associated with consuming one more unit of a good or service

Question 8

Margin

Answer 8

in a succession of units, the specific unit you are focusing on

Question 9

Total utility

Answer 9

the total satisfaction derived from consuming a specific quantity of a good or service; the total of marginal utilities for all individual units consumed