Karteikarten
Chapter 1&2
Karten in diesem Stapel (23)
- 1Define: Opportunity CostWhat we have to give up in return for something else.
The highest foregone benefit. - 2What is PPC?Production Possibility Curve
- 3Define: ResourcesInputs (land, labour, etc.) use to produce goods and services.
- 4What are the two factors that cause the "Economic Problem"?Limited Resources & Unlimited Needs
- 5Define: MicroeconomicsStudies the behaviour of the individual economic units
ex. consumer/producer behaviour - 6Define: MacroeconomicsStudies the behaviour of the whole economy aggregate
ex. exports, inflation, economic growth - 7Points above the PPC are:Unattainable and not feasible.
- 8Points on the PPC are:Attainable and efficient (due to all resources being used up)
- 9Points below the PPC are:Attainable but inefficient (due to spare resources)
- 10What is the Law of Increasing Opportunity Cost?The amount we have to give up from one good to get the other increases.
This is due to resources not being easily transferable from one use to another. - 11What is the Ceteris Paribus assumption?Isolating the effects of one variable from other events that might influence results.
"Holding everything else constant" - 12Define: CorrelationThe fact that two events occur at the same time.
- 13Define: CausationAn event that causes the other to occur.
- 14What is the Fallacy of Composition?If something is true for an individual, it is not necessarily true for many individuals as a group.
- 15Define: Positive AnalysisAn objective, value-free approach, utilizing the scientific method.
- 16Define: Normative AnalysisA subjective, biased approach, where one expresses opinions about the desirability of various actions.
- 17Define: ScarcityA situation that exists when human wants exceed available resources.
- 18What are the four categories of scarce resources used in production of goods and services?1. Labour
2. Land
3. Capital
4. Entrepreneurship - 19Define: GoodsItems that we value or desire.
Usually, tangible. - 20Define: ServicesIntangible acts people are willing to pay for
- 21Define: Marginal ThinkingFocusing on the additional or incremental choices.
- 22Define: Marginal ChoiceSmall or large incremental changes to a plan of action.
- 23What is the Rule of Rational Choice?Individuals will pursue an activity if the expected marginal benefits are greated than the expected marginal costs.
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- 101 Economics Karteikarten am Chapter 1&2, erstellt von Anthony Deng am 06/01/2016.
- Erstellt von
- Anthony Deng
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