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20 Cards in this Set
- Front
- Back
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Microeconomics |
The study of the choices that individuals and businesses make, the way these choices, interact in markets and the influence of government |
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Opportunity cost |
The highest valued alternative that must be given up when a choice is made |
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Labour |
The work time and effort that people devote to producing goods and services |
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Incentive |
A reward that encourages an action or a penalty that discourages one |
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Preferences |
The likes and dislikes of a person and the intensity of those feelings |
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Factors of production |
Produces goods and services AKA productive resources |
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Macroeconomics |
The study of the performance of the national and global economy |
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Human capital |
Depends on quality of labour |
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Profit |
Earned by selling entrepreneurship |
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Scarcity |
Inability to get everything we want |
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Land |
Natural resources |
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Entrepreneurship |
Human resource that organizes land, capital and labour |
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Rent |
Earned by selling land |
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Self interest |
Occurs when a person makes a choice that is the best choice for them |
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Social interest |
Occurs when a person makes a choice that is the best for society as a whole |
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Efficiency |
Achieved when available resources are used to produce goods and services at the lowest possible cost and in the quantity that gives the greatest possible value or benefit |
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Rational choice |
A choice that compares costs and benefits and achieves the greatest benefit over the cost of the person making that choice |
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Goods & services |
Objects that people value and produce to satisfy human wants |
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Capital |
The tools, instruments, machines, buildings and other constructions that businesses use to produce goods and services |
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Benefit |
The gain or pleasure that results from a choice |
