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20 Cards in this Set
- Front
- Back
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scarcity |
the limited nature of society's resources |
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efficiency |
the property of society getting the most it can from its scarce resourses |
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equity |
the property of distributing economic prosperity fairly among the members of society |
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opportunity cost |
whatever must be given to obtain some item |
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rational people |
people who systematically and purposefully do the best they can to achieve their objective |
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marginal changes |
small incremental adjustments to a plan of action |
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incentive |
something that induces a person to act |
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market failure |
a situation in which a market left on its own fails to allocate resources efficiently |
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externality |
the impact of one person's action on the well-being of a bystander |
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market power |
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
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productivity |
the quantity of goods and services produced from each hour of a worker's time |
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inflation |
an increase in the overall level of prices in the economy |
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business cycle |
fluctuations in economic activity, such as employment and production |
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microeconomics |
the study of how households and firms make decisions and how they interact in markets |
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macroeconomics |
the study of economy-wide phenomena, including inflation, unemployment, and economic growth |
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absolute advantage |
the ability to produce a good using fewer inputs than another producer |
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opportunity cost |
whatever must be given up to obtain some item |
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comparitive advantage |
the ability to produce a good at a lower opportunity cost than another producer |
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imports |
goods produced abroad and sold domestically |
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exports |
goods produced domestically and sold abroad |
