Economics

Front 1

comparative cost

Back 1

the amt the production of one product must be reduced to increas the production of another product

Front 2

causation

Back 2

one or several events bring about or result in another event

Front 3

resource market

Back 3

a market in which households sell and firms buy the services of resources

Front 4

ceteris paribus or other things being equal assumption

Back 4

assume all other variables except those under immediate consideration are held constant

Front 5

product market

Back 5

a market in which firms sell and households buy the products they have produced

Front 6

significant points for economic goals:

Back 6

1. Interpretation
2. Complementary
3. Conflicting
4. Priorities

Front 7

market

Back 7

mechanism or arrangement which brings buyers or "demanders" and sellers or "suppliers" of a good or service into contact with one another.

Front 8

policy economics

Back 8

the formulation of courses of action to bring about desired results or to prevent undesired occurences ( to control economic events)

Front 9

self interest

Back 9

primary driving force of capitalism

Front 10

pitfalls to objective thinking

Back 10

1. bias
2. loaded terminology
3. definitions
4. fallacy of composition- cant assume what is true for the individual is true for the whole
5. Cause and Effect: Post Hoc Fallacy- if A happens,and then B happens, A causes B isnt neccessarily true

Front 11

competition

Back 11

1. presence of large #s of independently acting buyers and sellers operating in the market for any particular product or resource.
2. the freedom of buys and sellers to enter and leave particular markets

Front 12

microeconomics

Back 12

specific economic units

Front 13

medium of exchange

Back 13

ie money

Front 14

formulating economic policy

Back 14

1. stating goals
2. policy options-choose methods to acheive goals
3. evaluation-review experiences and evaluate effectiveness.

Front 15

comparative advantage

Back 15

a lower relative or comparative cost than another producer

Front 16

terminology

Back 16

laws, theories, principles and models are all same the thing

Front 17

terms of trade

Back 17

do better through trade than they can at home--the rate at which units of one product can be exchanged for units of another product; the price of a good or serivce; the amt of one good or service that must be given up to obtain one unit of another good or service

Front 18

post hoc, ergo propter hoc, or ater this, therefore because of this, fallacy

Back 18

if A happens,and then B happens, A causes B isnt neccessarily true

Front 19

capital goods

Back 19

satisfy consumer wants indirectly by permitting more efficent production of consumer goods.

Front 20

economic theory

Back 20

deriving economic principles from relevant economic facts

Front 21

capitalism

Back 21

private ownership of resources and the use of a system of markets and prices to coordinate and driect economic activity-motivated by self interest.

Front 22

correlation

Back 22

two sets of data are associated in some systematic and dependable way--not causation--ex. when x increases Y increases. but x's increase isnt necessarily the cause of y's increase. the relationship cou.ld be purely coincidental or determined by another factor Z, not included in analysis

Front 23

productive efficiency

Back 23

the least costly production techiniques are used to produce wanted goods and services.

Front 24

descriptive or empirical economics

Back 24

the gathering or collection of relevant economic facts (data)

Front 25

authoritarian capitalism

Back 25

hitler, govt control, but property privately owned.

Front 26

positive economics

Back 26

FACTS! scientific statements about economic behavior

Front 27

full production

Back 27

all employed resouces should be used to make the most valued contributions to the domestic output

Front 28

induction

Back 28

distills or creates principles from facts--a method of reasoning that proceeds from facts to generalization.

Front 29

market socialism

Back 29

yugoslavia, public ownership of resources, increasing reliance on free markets to organize and coordinate economic activity.

Front 30

generalizations

Back 30

economic principles are imprecise quantitative statements

Front 31

scarce resources

Back 31

1. land-"gifts of nature"
2. capital-investment goods, facilitates in production of consumer goods
3.labor
4.entrepreneurial ability--innovator,risk taker, driving force, sets policy

Front 32

normative economics

Back 32

OPINION--what is recommended

Front 33

private property

Back 33

right to bequeath

Front 34

economic goals

Back 34

1.economic growth-higher standard of living
2.full employment
3.economic efficiency-maximum benefits, minimal cost
4.price level stability
5.economic freedom
6.an equitable distribution of income
7.economic security-provisions for those unable to earn minimum income
8.balance of trade

Front 35

full employment

Back 35

all available resources should be employed

Front 36

macroeconomics

Back 36

economy as a whole

Front 37

communism

Back 37

public ownership of virtually all property resources and the rendering of economic desicions thourgh central economic planning

Front 38

all factors of production have one thing in common

Back 38

scarce or limited in supply

Front 39

traditional or customary economy

Back 39

bartering, ect.

Front 40

investment

Back 40

the process of producing and purchasing capital goods

Front 41

freedom of enterprise

Back 41

under pure capitalism, private business enterprises are free to obtain economic resources, to organize these resources in the production of a good or service of the firm's own choosing, and to sell it in the markets of their choice.

Front 42

allocative efficiency

Back 42

resources are devoted to goods most wanted by society

Front 43

trade deficit

Back 43

imports are greater than exports

Front 44

full employment

Back 44

all available resources should be employed

Front 45

trade surplus

Back 45

exports are greater than imports

Front 46

utility

Back 46

pleasure or satisfaction

Front 47

freedom of choice

Back 47

owners of property resources and money capital can employ or dispose of these resources as they see fit; laborers are free to enter any lines of work; free to buy whatever they want

Front 48

economizing problem

Back 48

1. society's material wants are unlimited and insatiable
2. economic resources-the means of producing goods and services- are limited or scarce

Front 49

dependent variable (effect)????

Back 49

vertical

Front 50

consumer goods

Back 50

directly satisfy the consumer wants

Front 51

abstractions

Back 51

do not mirror the full complexity of reality

Front 52

opportunity cost

Back 52

the amount of other products which must be forgone or sacrificed to obtain some amount of any given product is called the opportunity cost of that good.

Front 53

the economic perspective

Back 53

cost benefit perspective; helps us analyze everyday behavior of individuals and institutions.

Front 54

economic growth

Back 54

the ability to produce a larger total output-is refelcted in a rightward shift of the production possibilities curve; it is the result of increase in resource supplies, improvements in resource quality, and technological progress

Front 55

independent variable (cause)????

Back 55

vertical

Front 56

the downward slope of the curve implies the notion of

Back 56

opportunity costs

Front 57

deduction

Back 57

begin with a theory and proceed to the verification or rejection of this theory by an appeal to the facts

Front 58

the concavity of the curve reveals

Back 58

increasing opportunity costs

Front 59

hypothesis

Back 59

observation, insight, logic, intuition to form an untested principle

Front 60

Growing economy

Back 60

1. expanding resouces supplies
2. technological advance
3.present choices, future possibilities