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Definition
| The limited nature of society’s resources |
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Term
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Definition
| The study of how society manages its scarce resources |
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Definition
| The property of society getting the most it can from its scarce resources |
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Definition
| The property of distributing economic prosperity fairly among the members of society |
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Definition
| Whatever must be given up to obtain some item |
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Definition
| People who systematically and purposefully do the best they can to achieve their objectives |
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Definition
| Small incremental adjustments to a plan of action |
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Definition
| Something that induces a person to act |
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Definition
| An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services |
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Definition
| The ability of an individual to own and exercise control over scarce resources |
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Definition
| A situation in which a market left on its own fails to allocate resources efficiently |
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Definition
| The impact of one person’s actions on the well being of a bystander |
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Definition
| The ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
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Definition
| The quantity of goods and services produced from each hour of a worker’s time |
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Definition
| An increase in the overall level of prices in the economy |
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Term
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Definition
| Fluctuations in economic activity such as employment and production |
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Term
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Definition
| A visual model of the economy that shows how dollars flow through markets among households and firms |
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Term
| Production possibilities frontier |
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Definition
| A graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology |
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Term
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Definition
| The study of how households and firms make decisions and how they interact in markets |
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Term
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Definition
| The study of economy wide phenomenon, including inflation, unemployment, and economic growth |
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Term
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Definition
| Claims that attempt to describe the world as it is |
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Term
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Definition
| Claims that attempt to prescribe how the world should be |
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Term
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Definition
| The ability to produce a good using fewer inputs than another producer |
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Term
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Definition
| Whatever must be given up to obtain some item? |
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Term
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Definition
| The ability to produce a good at a lower opportunity cost than another producer |
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Term
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Definition
| Goods produced abroad and sold domestically |
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Term
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Definition
| Goods produced domestically and sold abroad |
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Term
| Gross domestic product (GDP |
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Definition
Gross domestic product (GDP
The market value of all final goods and services produced within a country in a given period of time |
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Term
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Definition
| Spending by households on goods and services, with the exception of purchases of new housing |
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Term
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Definition
| Spending on capital equipment, inventories and structures, including house hold purchases of new housing |
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Definition
| Spending on goods and services by local, state, and federal governments |
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Definition
| Spending on domestically produced goods by foreigners (exports) minus spending on foreign foods by domestic residents (imports) |
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Definition
| The production of goods and service4s valued at current prices |
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Term
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Definition
| The production of goods and services valued at constant prices |
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Term
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Definition
| A measure of the price level calculated as the ratio of nominal GDP to real GDP times 100 |
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