Term
|
Definition
| The study of how best to allocate scarce resources among competing uses. |
|
|
Term
|
Definition
| The most desired goods and services that are forgone in order to obtain something else |
|
|
Term
|
Definition
| Resource inputs used to produce goods and services. Like land, labor, capital. |
|
|
Term
|
Definition
| The alternative combinations of goods and services that could be produced in a given time period with all available resources and technology. |
|
|
Term
|
Definition
| Expenditures on (production of) new plant equipment (capital) in a given time period, plus changes in business inventories. (To be best future minded) |
|
|
Term
|
Definition
| An increase in output (real GDP) an expansion of production possibilities. |
|
|
Term
|
Definition
| economic decisions made by congress. |
|
|
Term
|
Definition
| The use of market prices and sales to signal desired outputs. |
|
|
Term
|
Definition
The use of government to make decisions for the masses. Regarding the WHAT HOW and FOR WHOM.
(Communism) |
|
|
Term
|
Definition
| The doctrine of "leave it alone" of nonintervention by government in the market mechanism. |
|
|
Term
|
Definition
| A balance of the market mechanism and central planning. Market decides private endeavors and government does bigger things. |
|
|
Term
|
Definition
| An imperfection in the market mechanism that prevents optimal outcomes. |
|
|
Term
|
Definition
| Costs of a market activity borne by a third party. (Pollution, waste, with no consequences) |
|
|
Term
| The first goal of economics |
|
Definition
| Satisfy the WHAT HOW and FOR WHOM questions. (Definition of economics) |
|
|
Term
| The second goal of economics |
|
Definition
| To predict how changes in government policy or market institutions will affect economic outcomes. |
|
|
Term
|
Definition
| When the government does not help, or even hurts the current economic situation. (Negative intervention). |
|
|
Term
|
Definition
| The study of aggregate economic behavior of the economy as a whole. (Big scale) |
|
|
Term
|
Definition
| The study of individual behavior in the economy, of the components of the larger economy. |
|
|
Term
|
Definition
| The assumption that nothing else changes. |
|
|
