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Definition
| Although our wants are UNLIMITED, the resources needed to obtain them are LIMITED. |
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| The study of the CHOICES that CONSUMERS, MANAGERS, AND GOVERNMENT OFFICIALS make to obtain their goals, GIVEN their SCARE RESOURCES. |
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| A group of BUYERS and SELLERS of a GOOD or SERVICE and the INSTITUTION or ARRANGEMENT by which they come together to TRADE. |
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| People make decisions that they feel will be best for them. BENEFITS OUTWEIGH COST. |
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Definition
| Money is a powerful thing. If it costs less to get robbed than to prevent from getting robbed, a bank will just get robbed. |
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Definition
| MB, The ADDITIONAL ENJOYMENT of ONE more unit. |
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Term
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Definition
| MC, The ADDITIONAL COST of ONE more unit. |
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| A comparison of Marginal Benefit vs. Marginal Cost in an effort to make better economic choices. |
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Term
| Additional (what should you think of) |
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Term
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Definition
| Producing one more unit of one good or service means producing less of another good or service. |
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Definition
| The highest-valued alternative that must be given up to engage in a given activity. |
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Term
| Three Fundamental Questions (1.2) |
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Definition
| What goods and services will be produced? How will the goods and services be produced? Who will receive the goods and services produced? |
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Term
| The Two Main Types of Economic Structures |
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Definition
| Centrally Planned Economy, Market Economy. |
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| Centrally Planned Economy |
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Definition
| The government decides how economic resources will be allocated. |
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Definition
| The decisions of households and firms interacting in markets allocate economic resources. |
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Definition
| The U.S. is a good example. Most decisions are made from the interaction of buyers and sellers in markets, but the government plays a significant role in the allocation of resources. |
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Definition
| The good or service is produced at the lowest possible cost. |
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Definition
| Production is in accordance with consumer preferences. |
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| Both the buyer and seller are made better off by the transaction. |
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| The fair distribution of economic benefits. |
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| A statement about an economic variable. |
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| Something measurable that can have different values, like the wages of software programmers. |
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Definition
| Analysis concerned with WHAT IS. |
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| Analysis concerned with WHAT OUGHT TO BE. |
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Definition
| The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices. |
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| The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth. |
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Definition
| The processes a firm uses to produce goods and services. |
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| An organization that produces a good or service. |
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Term
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Definition
| An organization that produces a good or service. |
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Term
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Definition
| An organization that produces a good or service. |
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Term
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Definition
| An activity done for others. |
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Definition
| The total amount received for selling a good or service. |
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Term
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Definition
| Total Revenue - Total Cost. |
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Term
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Definition
| Exclude the cost of some economic resources that the firm does not pay for explicitly. |
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Definition
| Include the opportunity cost of all resources used by the firm. |
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Term
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Definition
| All persons occupying a home, a supplier of labor used by firms to produce goods and services. |
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Definition
| Labor, Capital, Human Capital, Natural Resources (including land), and entrepreneurial ability. |
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Definition
| Stocks and bonds, bank accounts, and holdings of money. |
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Definition
| Manufactured goods that are used to produce other goods and services. IE computers, factory buildings, machine tools, warehouses, trucks. |
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Definition
| The total amount of physical capital available in a country. |
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Definition
| The accumulated training and skills that workers possess. |
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