Flashcards
Chapter 1 Vocabulary- Micro
Cards in this deck (32)
- 1a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trademarket
- 2the study of the choices of consumer, business managers, and government officials to attain their goals given their scarce resourceseconomics
- 3situation in which unlimited wants exceed the limited resources available to fulfill those wants; we must make choices because of this.scarcity
- 4the idea that, because of scarcity, producing more of one good or service means producing less of another good or servicetrade-off
- 5highest valued alternative that must be given up to engage in an activityopportunity cost
- 6when the government decides how economic resources will be allocated (ex: North Korea, Soviet Union)centrally planned government
- 7decisions of households and firms interacting in markets allocate economic resourcesmarket economy
- 8when economic decisions result from both interaction of buyers and sellers in the market and government plays a role in the allocation of the resourcesmixed economy
- 9the ability of an economy to produce increasing quantities of goods and serviceseconomic growth
- 10occurs when a good or service is produced at the lowest possible costproduct efficiency
- 11occurs when production is in accordance with consumer preferencesallocative efficiency
- 12occurs in markets when both buyer and seller of a product are made better off by the transactionvoluntary exchange
- 13goods and services bought domestically but produced in other countriesimports
- 14the fair distribution of economic benefitsequity
- 15simplified version of reality used to analyze real-world economic situationseconomic model
- 16analysis concerned with "what is"positive analysis
- 17analysis concerned with "what should be"normative analysis
- 18study of how households and firms make choices, how they interact in markets and how the government attempts to influence their choicesmicroeconomics
- 19study of economy as a whole including topics such as inflation, unemployment, and economic growthmacroeconomics
- 20organization that produces a good or servicefirm, company, or business
- 21someone who operates a business; decides "what" and "how"entrepreuner
- 22practical application of an inventions; significant improvement in a good or in the means of producing a goodinnovation
- 23processes it uses to produce goods and servicestechnology
- 24tangible merchandise (ex: books/computers)goods
- 25activities done for others (ex: haircuts)services
- 26total amount a firm receives for selling a good or servicerevenue
- 27the difference between a firm's revenue and its costsprofit
- 28all persons occupying a househousehold
- 29used by firms to produce goods and servicesfactors of production, economic resources, or inputs
- 30financial: stocks and bonds physical: computers, machine toolscapital
- 31accumulated training and skills that workers posseshuman capital
- 32something measurable that can have different values (ex: income)economic variable
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- Vocabulary/Key Terms for Chapter 1- Microeconomics
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- Olivia t
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