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10 Cards in this Set
- Front
- Back
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economics
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the study of how society manages its scarce resources
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efficiency
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society getting the most it can from its scarce resources
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equality
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distributing economic prosperity uniformly among the members of society
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opportunity cost
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whatever must be given up to obtain some item
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rational people
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people who systematically and purposefully do the best they can to achieve their objectives
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market economy
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economy that allocates resources through the decentralized decisions
of many firms and households as they interact in markets for goods and services |
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market failure
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a market left on its own fails to allocate resources efficiently
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externality
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the impact of one person’s actions on the well-being of a third party
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market power
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ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
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productivity
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quantity of goods and services produced from each unit of labor input
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