Term
|
Definition
| society hs limited recources and hterefore cannot produce alll the goods and services people wish to have |
|
|
Term
|
Definition
| the study of how scoiety manages its scare resources |
|
|
Term
|
Definition
| the property of society getting the most it can from its scarce resources |
|
|
Term
|
Definition
| the property of distributing economic prosperity fairly among the members of society |
|
|
Term
|
Definition
| whatever must be given up to obtain some item |
|
|
Term
|
Definition
| people who systematically and purposefully do the best they can to achieve their objectives |
|
|
Term
|
Definition
| small incremental adjustments to a plan of action |
|
|
Term
|
Definition
| something that induces a person to act |
|
|
Term
|
Definition
| an economy that allocated recources through the dectralized decisions of many firms and households as they interact in markets for goods and services |
|
|
Term
|
Definition
| the ability of an individual to own and exercise control over scarce resources |
|
|
Term
|
Definition
| a situation in which a market left on its own fails to allocate resources efficiently |
|
|
Term
|
Definition
| the impact of one person's actions on the wellbeing of a bystander -- can lead to a market failure |
|
|
Term
|
Definition
| an example of an externality -- the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
|
|
Term
|
Definition
| the quantity of goods and services produced from each hour of a worker's time. almost all variation in living standards among countries is attributable to differences in countries' productivities. |
|
|
Term
|
Definition
| an increase in the overall level of prices in the economy |
|
|
Term
| short term effects of monetary injections |
|
Definition
- stimulates the overall level of spending and thes the demand for goods and services
- higher demand -->firms raise the prices of their goods. thus an increase in the goods produced and labor hired
- more hiring= lower unemployment |
|
|
Term
|
Definition
| flunctuations in economic activity, such as employment and production |
|
|
