Term
|
Definition
| our inability to satisfy all our wants |
|
|
Term
|
Definition
| a reward that encourages an action or a penalty that discourages one |
|
|
Term
|
Definition
| the social science that studies the choices that individuals, business, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices |
|
|
Term
|
Definition
| the study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments |
|
|
Term
|
Definition
| the study of the performance of the national economy and the global economy |
|
|
Term
| Two big questions summarize the scope of economics: |
|
Definition
- How do choices end up determining what, how, and for whom goods and services are produced?
- How can choices made in pursuit of self-interest also promote the social interest?
|
|
|
Term
| list 4 factors of production |
|
Definition
- land
- labor
- capital
- entrepreneurship
|
|
|
Term
|
Definition
|
|
Term
|
Definition
| work time and work effort that people devote to producing goods and services |
|
|
Term
|
Definition
| the knowledge and skill that people obtain from education, on-the-job training, and work experience |
|
|
Term
|
Definition
| the tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services |
|
|
Term
|
Definition
| the human resource that organizes labor, land, and capital |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| Entrepreneurship earns... |
|
Definition
|
|
Term
|
Definition
| a choice is in your self-interest if you think that choice is the best one available for you |
|
|
Term
|
Definition
| self-interested choices promote the social interest if they lead to an outcome that is the best for society as a whole - an outcome that uses resources efficiently and distributes goods and services equitably (or fairly) among individuals |
|
|
Term
| Resources are used efficiently when goods and services are produced... |
|
Definition
- At the lowest possible cost, and
- In the quantities that give the greatest possible benefit.
|
|
|
Term
|
Definition
| the expansion of international trade, borrowing and lending, and investment |
|
|
Term
|
Definition
| an exchange - giving up one thing to get something else |
|
|
Term
|
Definition
| the tradeoff between equality and efficiency |
|
|
Term
|
Definition
| the highest-valued alternative that we must give up to get it |
|
|
Term
|
Definition
| the benefit that arises from an increase in an activity |
|
|
Term
|
Definition
| the cost of an increase in an activity |
|
|
Term
|
Definition
statements about what is
can be tested by checking it against the facts |
|
|
Term
|
Definition
statements about what ought to be
depend on values and cannot be tested |
|
|
Term
|
Definition
| a description of some aspect of the economic world that includes only those features that are needed for the purpose at hand |
|
|
Term
|
Definition
- natural experiments
- statistical investigations
- economic experiments
|
|
|
Term
| Name 3 economic policies. |
|
Definition
- Personal economic policy
- Business economic policy
- Government economic policy
|
|
|
Term
| positive relationship/direct relationship |
|
Definition
| a relationship between two variables that move in the same direction |
|
|
Term
|
Definition
| a relationship shown by a straight line |
|
|
Term
| negative relationship/inverse relationship |
|
Definition
| a relationship between variables that move in opposite directions |
|
|
Term
|
Definition
| "if all other relavent things remain the same" |
|
|
