Chapter 1- Intro to Microeconomics Flashcards
1
Q
Incentive
A
The reward that encourages an action, or a penalty that discourages one.
2
Q
Economics
A
The social science that studies the choices that people make as the cope with scarcity and incentives that influence those choices.
3
Q
Microeconomics
A
Individual choices (households, businesses, government)
4
Q
Macroeconomics
A
Grupal choices in different levels (town, city, state, country, continent, globally)
5
Q
Production Possibilities Frontier (PPF)
A
The boundary between the combination of goods that can be produced and those that can’t.
6
Q
Two big questions of economics:
A
- What, how, and for whom are goods produced?
2. Do choices made in self-interest promote social-interest?
