Macroecon Exam 1

Front 1

Opportunity Cost-

Back 1

to obtain more of 1 thing, society forgoes the opportunity of getting the next best thing

Front 2

Utility-

Back 2

the pleasure, happiness, or satisfaction obtained from consuming a good or service

Front 3

Marginal Analysis-

Back 3

comparisons of marginal benefits and marginal costs, usually for decision making

Front 4

Economic Principles are expressed as the:

Back 4

tendencies of typical or average consumers, workers, or business firms

Front 5

Other-Things-Equal Assumption-

Back 5

the assumption that factors other than those being considered do not change

Front 6

Microeconomics-

Back 6

at this level of analysis, the economist observes the details of an economic unit, or very small segment of the economy, under a figurative microscope

Front 7

Macroeconomics-

Back 7

examines either the economy as a whole or its basic subdivisions or aggregates, such as the gov. household and business sectors

Front 8

Aggregate-

Back 8

a collection of specific economic units treated as if they were one unit

Front 9

Positive Economics-

Back 9

focus on facts and cause-and-effect relationships

Front 10

Normative Economics-

Back 10

incorporates value judgements about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal

Front 11

Economizing Problem-

Back 11

the need to make choices bc economic wants exceed economic means

Front 12

Budget Line-

Back 12

a schedule or curve that shows various combinations of 2 products a consumer can purchase with a specific money income

Front 13

Economic Resources-

Back 13

all natural, human, and manufactured resources that go into the production of goods and services

Front 14

4 Resource Categories:

Back 14

-land
-labor
-capital
-entrepreneurship

Front 15

Land-

Back 15

includes all natural resources used in the production process, such as arable land, forests, mineral and oil deposits, and water resources

Front 16

Labor-

Back 16

consists of physical and mental talents of individuals used in producing goods and services

Front 17

Capital-

Back 17

includes all manufactured aids used in producing consumer goods and services