Term
|
Definition
| Study of society's production and distribution of goods and services. We choose our scare resources the way we do and what their consequences are. |
|
|
Term
|
Definition
| focuses on the individual parts of the economy. Analyzes a single product market or of groups of people with a common economic purpose. |
|
|
Term
|
Definition
| economy as a "whole." Add up the counterparts. Study the level or average of ALL prices in the economy. |
|
|
Term
|
Definition
| limited availability of things that we desire (not to be confused with a shortage (like of nice/pricey cars)). |
|
|
Term
|
Definition
| the benefits (satisfaction or well-being) individuals receive from owning or consuming goods and services. |
|
|
Term
|
Definition
| Factors of production (inputs) that are used to produce the goods and services which give us utility. Anything of value or usefulness. |
|
|
Term
|
Definition
| Living in a world in which our material wants are unlimited while the means to produce goods that satisfy our wants are limited. Deciding how to use our scare resources to satisfy some, but not all of our wants. |
|
|
Term
|
Definition
| The highest valued benefits that must be given up when using a resource in a particular way. The highest valued alternative that is unavailable because a resource is used in some other way. |
|
|
Term
|
Definition
| The quantity and quality of the labor force as a contributor to the production of final goods and services. |
|
|
Term
|
Definition
| Human-made resources used to produce final goods e.g. factories, machines, and tools. |
|
|
Term
|
Definition
| Producing something at the lowest possible opportunity cost. Producing those goods that give us the most utility relative to what has to be given up. |
|
|
Term
|
Definition
| Anything that facilitates the voluntary exchange of goods and services between people. A "place" where individuals can exchange, at some established price, goods, and services they wish to purchase (if they are acting as buyers or demanding to sell. |
|
|
Term
|
Definition
| The relationship between the price of a good and the desired rate of purchase, CETERIS PARIBUS. |
|
|
Term
|
Definition
| The higher the price of a good, the lower the desired rate of purchase, CETERIS PARIBUS. Alternatively, there is an inverse relationship between the price of a good and the quantity demanded. |
|
|
