Economics Test 1 (exam) Flashcards
An excess of unsold products resulting from a price above the market equilibrium price
Surplus
An insufficient of an item as a result of a price below the market equilibrium price
Shortage
The science of how and why people, businesses, and governments make the choices they do
Economics
The satisfaction one gives up or the regret one experiences for not choosing a desirable alternative
Opportunity cost
The satisfaction a person receives from a choice
Opportunity benefit
The condition of having unlimited wants and thus never being satisfied
Insatiability
The condition of a good or service being finite or limited in quantity
Scarcity
Austrian economist that said an object’s utility to the user is what determines its usefulness
Karl Menger
Any tangible thing that has a measurable lifespan
Good
An intangible function produced by useful labor
Service
The tendency of people to receive less and less additional satisfaction from any good or service as it obtains more and more of it during a specific amount of time
Principle of diminishing marginal utility
The worth of a good or service is determined by its usefulness to the buyers
Subjective value
Value ascribed to a good or service because of its nature
Intrinsic value
The level of economic study that is concerned with large-scale economic choices and issues
Microeconomics
The level of economic study that is concerned with large scale economic choices and issues
Macroeconomics
