Economics Chapter 1
About this set
Created by:
oliviaiscool09 on September 15, 2009
Subjects:
Log in to favorite or report as inappropriate.
Order by
27 terms
Terms | Definitions |
|---|---|
 economics | A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. |
| economic perspective | economic way of thinking |
| opportunity cost | the thing you give up when you decide to do or have something else |
| utility | the amount of satisfaction one gets from a good or service |
| marginal analysis | analysis that involved comparing marginal benefits and marginal costs. |
| scientific method | A research method whereby a problem is identified, a hypothesis stated, and hypothesis is tested |
| economic principle | a statement about economic behavior or the economy that enables prediction of the probable effects of certain actions |
| other-things-equal assumption | the assumption that factors other than those being considered do not change |
| microeconomics | the part of economics concerned with individual units such as a person, household, firm or industry |
| macroeconomics | examines either the economy as a whole or its basic subdivisions or aggregates |
| aggregate | collection of specific economic units treated as if they were one unit |
| positive economics | The scientific study of "what is" among economic relationships. (what is) |
| normative economics | economics that state what should be (what should be) |
| economizing problem | the need to make choices because economic wants exceed economic means |
| budget line | budget constraint |
| economic resources | natural, human, and manufactured resources that go into the production of goods and services |
| land | all natural resources used in the production process |
| labor | the physical and mental talents of individuals used in producing goods and services |
| capital | all manufactured aids used in producing consumer goods and services |
| investment | the purchase of capital goods |
| entrepreneurial ability | the human resource that combines the other resources to produce a product, makes nonroutine decisions, innovates, and bears risks. |
| factors of production | land, labor, capital and entrepreneurial ability combined to produce goods and services |
| consumer goods | products that satisfy our wants directly (pizzas) |
| capital goods | products that satisfy wants indirectly by making possible more efficient production of comsumer goods |
| production possibilities curve | a curve showing 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 |
| law of increasing opportunity costs | as the production of a particular good increases the opportunity cost of producing an additional unit rises |
| economic growth | a larger total output |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.
Set Champions
Space Race Champion
3,940 points by oliviaiscool09
Speller Champion
100% correct by ambsolymar