Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
28 Cards in this Set
- Front
- Back
The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity
|
Economics
|
|
Economic way of thinking
|
Economic Perspective
|
|
The amount of other products that must be forgone or sacrificed to produce a unit of a product
|
Opportunity Cost
|
|
The pleasure, happiness, or satisfaction obtained from consuming a good or service
|
Utility
|
|
Comparisons of marginal benefits and marginal costs, usually for decision making
|
Marginal Analysis
|
|
A statement about economic behaviour or the economy that enables prediction of the probable effects of certain actions
|
Economic Principle
|
|
The assumption that factors other than those being considered do not change (a.k.a ceteris paribus)
|
Other-Things-Equal Assumption
|
|
The part of economics concerned with the economy as a whole; with such major aggregates as the household, business, and government sectors; and with measures of the total economy
|
Macroeconomics
|
|
A collection of specific economic units treated as if they were one. (e.g. "price level" and "gross domestic product").
|
Aggregate
|
|
The part of economics concerned with decision making by individual units such as a household, a firm, or an industry and with individual markets, specific goods and services, and product and resource prices
|
Microeconomics
|
|
Focuses on facts and cause-and-effect relationships; "what is"
|
Positive Economics
|
|
incorporates value judgements about what the economy should be like; "what ought to be"
|
Normative Economics
|
|
The need to make choices because economic wants exceed economic means
|
Economizing Problem
|
|
A schedule or curve that shows various combinations of two products a consumer can purchase with a specific money income
|
Budget Line
|
|
All natural, human, and manufactured resources that go into the production of goods and services
|
Economic Resources
|
|
All natural resources used in the production process (e.g. arable land, forests, etc.)
|
Land
|
|
Physical + mental talents of individuals used in producing goods + services
|
Labour
|
|
All manufactured aids used in producing consumer goods + services
|
Capital
|
|
The purchase of capital goods
|
Investment
|
|
The human resources that combines other resources to produce a product; makes non-routine decisions, innovates, and bears risks
|
Entrepreneurial Ability
|
|
Land, labour, capital, and entrepreneurial ability because they are combined to produce goods and services
|
Factors of Productions
|
|
Products that satisfy our wants directly
|
Consumer Goods
|
|
Products that satisfy our wants indirectly by making possible more efficient production of consumer goods
|
Capital Goods
|
|
Shows the different combinations of two goods or services that can be produced in a "full-employment, full-production" economy where the available supplies of resources and technology are fixed
|
Production Possibilities Curve
|
|
As the production of a particular good increases, the opportunity costs of producing an additional unit rises.
|
Law of Increasing Opportunity Costs
|
|
An outward shift in the PPC that results from an increase in resource supplies or quality or an improvement in technology
|
Economic Growth
|
|
The assumption that what is true for one individual or part of a whole is true for a group of individuals or the whole
|
Fallacy of Composition
|
|
The reasoning that because event A preceded event B, event A caused event B ("the rooster crows before the dawn, but does not cause the sunrise").
|
Post Hoc Fallacy
|