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24 Cards in this Set
- Front
- Back
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economics
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study of how scarce resources are allocated among competing uses
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scarcity
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there are not enough resources available to produce and consume all the goods and services we desires
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microeconomics
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the study of how individual consumers or households interact with firms in markets
- how firms use resouces and how indeividual workers decide how much time to alocate to labor |
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macroeconomics
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study of the major spending and producing units in the economy
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positive economic analysis
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type of economic analysis that involves "what is", or purely objective relationships that can be tested with data
- cheapest airfare - what would happen if 100,000 loan increase by 1% |
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normative economic analysis
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type of economic analysis often can be described as "what ought to be". normative economic analysis is subjective
should we subsideize the medical bills of low income patients should the government adopt policies that cause hardship |
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economic system
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sets the basic ground rules for consumer and producer interactions
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goods and services
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all those resources and activities that consumers, firms, and the governement consider valuable
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market based system
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allocates goods and services based on prices. prices are are determined by the forces of supply and demand
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demand driven economy
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producers respond to the desires of consumers, rather than forcing consumers to mold their choices to what firms want to produce
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normative economic analysis
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type of economic analysis often can be described as "what ought to be". normative economic analysis is subjective
should we subsideize the medical bills of low income patients should the government adopt policies that cause hardship |
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economic system
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sets the basic ground rules for consumer and producer interactions
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goods and services
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all those resources and activities that consumers, firms, and the governement consider valuable
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market based system
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allocates goods and services based on prices. prices are are determined by the forces of supply and demand
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demand driven economy
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producers respond to the desires of consumers, rather than forcing consumers to mold their choices to what firms want to produce
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rational self interest
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consumers endeavor to make choices that give them the greatest satisfaction
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mixed economy
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most goods and services are allocated using markets, but some goods and services are allocated by the government
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centrally planned economy
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the government, rather than the market, allocates resources
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transition economy
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economies in the process of switching from an allocation scheme that relies on central planning to one that uses markets
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opportunity cost
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the value of the most desired alternative you forgo in order to obtain a good or service or under take another activity
you took history so the oppurtunity cost is biology |
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cost-benefit analysis
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systematically compares the costs and benefits of an activity to determine whether it should be pursued and, if so, the extent to which it should be pursued
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marginal cost
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the cost of consuming or producing that additional unit compared to marginal benefit
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marginal benefit
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benefit associated with consuming or producing one more unit
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economic model
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tools that economists use to understand and explain economic events and to predict the outcome of economic actions
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