Vocab Quiz-Unit 1 Flashcards
Economics
Study of scarcity of choice, social science of how individuals seek to satisfy material needs and desires
Macroeconomics
Study of the whole economy- structure, performance,etc.
Scarcity
Total production of good and services= less than total wants of society
Opportunity Cost
What you must give up in order to get something
Resource
Anything can can be used to produce something else ex: factor of production
Land, Labor, Physical Capital, Entrepreneurship
- Natural resources 2. Efforts of workers 3. Durable manufactured goods in production 4. Innovation, risk taking
Consumer Good, Capital Good
- Any good purchased for consumption 2. Good used to produce(as an input) to something else
Efficiency
Maximizing production, profit, or any other objective
Equity
Fairness or desirability of a distribution of goods
Positive, Negative Statement
- Describes what is or what is predicted- date 2. No data, states something based on opinion
Model
Simplified representation used to better understand the real world,
Ceteris Paribus
All other things equal, relevant factors remain unchanged
Rationality
People want more of a good thing; people make choices to attain goals
Perfect Information
Everyone has complete info about prices/qualities of products available for purchase
Incentives
Rewards or punishments that motivate choices or decisions
Comparative advantage
Being able to produce aa good or service at a lower opportunity cost(give up less)
Absolute advantage
Being able to produce more of a good or service with a given amount of resources OR produce more with less
PPC
Graphical representation of combinations of production that are possible using available resources in the production of goods
Terms of Trade
Price(of one good in terms of another) at which two goods can be traded internationally
