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18 Cards in this Set
- Front
- Back
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Economics
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The social science concerned with how individuals, institutions, and society use limited resources to fulfill unlimited wants.
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Economic Perspective
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A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions.
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Opportunity Cost
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The amount of other products, the next best alternative, that must be forgone or sacrificed to produce a unit of a product.
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Utility
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The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service.
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Marginal Analysis
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The comparison of marginal ("extra" or "additional") benefits and marginal costs usually for decision making
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Scientific Method
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The procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing of hypothesis to obtain theories, principles, and laws.
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Economic Principle
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A widely accepted generalization about the economic behavior of individuals or institutions.
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Macroeconomics
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The part of economics concerned with the economy as a whole; with such major aggregates as the household, business, and government sectors; and with measures of the total economy.
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Aggregate
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A collection of specific economic units treated as if they were one.
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Ceteris Paribus Assumption
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The assumption that factors other than those being considered are held constant.
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Microeconomics
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The part of economics concerned with decision making by individual units such as a household, a firm, or an industry and with individual markets, specific goods and services, and product and resource prices.
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Positive Economics
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The analysis of facts or data to establish scientific generalizations about economic behavior.
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Normative Economics
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The part of economics involving value judgements about what the economy should be like; focused on which economic goals and policies should be implemented.
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Economizing Problem
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The choices necessitated because society's economic wants for goods and services are unlimited but the resources available to satisfy these wants are limited.
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Budget Line
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Also called a Budget Constraint. It is a schedule or curve that shows various combinations of two products a consumer can purchase with a specific money income.
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Economic Resources
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The land, labor, capital and entrepreneurial ability that are used in the production of goods and services.
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Rational Self- Interest
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To pursue actions to achieve the greatest satisfaction
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Scarcity
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A situation in which human wants are
greater than the capacity of available resources to provide for those wants A situation in which a resource had more than one valuable use MUST BE WANTED |
