Fichas
ECON100 - Chapter 1
Fichas del conjunto (22)
- 1MarketA group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade.
- 2Marginal AnalysisAnalysis that involves comparing marginal benefits and marginal costs
- 3ScarcityThe situation in which unlimited wants exceed the limited resources available to fulfill those wants
- 4ResourcesInputs used to produce goods and services, including natural resources such as land, water and minerals, labour, capital and entrepreneurial ability
- 5Trade offThe idea that, because of scarcity, producing more of one good or service means producing less of another good or service
- 6Opportunity CostThe opportunity cost of any activity is the highest valued alternative that must be given up to engage in that activity
- 7Centrally planned economyan economy in which the government decides how economic resources will be allocated
- 8Market economyAn economy in which the decisions of households and firms interacting in markets allocate economic resources
- 9Consumer sovereigntythe concept that in a market economy it is ultimately consumers who decide what goods and services will be produced
- 10Mixed economyAn economy in which most economic decisions result from the interaction of buyers and sellers in markets, but in which the government plays a significant role in the allocation of resources
- 11Productive efficiencyWhen a good or service is produced using the least amount of resources
- 12Allocative efficiencywhen production reflects consumers preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it
- 13Dynamic efficiencyoccurs when new technology and innovation are adopted over time
- 14Voluntary exchangeoccurs in markets when both the buyer and seller of a product are made better off by the transaction
- 15Equitythe fair distribution of economic benefits between individuals and between societies
- 16Economic modelsSimplified versions of reality used to analyse real-world economic situations
- 17Economic variableSomething measurable that relates to resources that can have different values, for example, wages, prices, litres of petrol
- 18Positive AnalysisAnalysis concerned with what is, involving value-free statements that can be checked by using the facts
- 19Normative AnalysisAnalysis concerned with what ought to be, involving value judgements which cannot be tested
- 20MicroeconomicsThe study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices
- 21MacroeconomicsThe study of the economy as a whole, including topics such as inflation, unemployment and economic growth
- 22Hypothesisis an economic model that may be correct or incorrect about an economic variable