Macroeconomics (Chptr 1)

Front 1

Social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity

Back 1

Economics

Hint 1

how people or the masses best choose how to use limited resources

Front 2

Economic resources needed to make goods & services are in limited supply

Back 2

Scarcity

Front 3

To obtain more of one thing, society forgoes the opportunity of getting the next best thing that could have been created with those resources

Back 3

Opportunity Costs

Hint 3

basis of all decision making in economics; more of this means less of that

Front 4

Comparisons of a change in benefits and Costa, for decision making

Back 4

Marginal Analysis

Front 5

Economic Problem:

Back 5

Wants exceed ability to satisfy

Front 6

Concerned with decision making by individual customers, workers, households and business firms

Back 6

Microeconomics

Front 7

Examines performance and behavior of the economy as a whole

Back 7

Macroeconomics

Front 8

Major areas of economic activity:

Back 8

Production, distribution or exchange, and consumption

Front 9

Scarce Resources: or Economic Resources:

Back 9

Land, labor, capital and entrepreneurial ability

Front 10

Two variables change in opposite directions; negative

Back 10

Inverse (indirect) relationship

Hint 10

used to understand graphing

Front 11

Two variables change in the second direction; positive

Back 11

Direct Relationship

Hint 11

used to understand graphing

Front 12

Goods used by the consumer to satisfy immediate wants

Back 12

Consumer (or final) goods

Front 13

Means of production; satisfy wants in the future

Back 13

Capital goods

Front 14

Means of production or tools used to produce goods and services

Back 14

Capital

Front 15

As economy produces more of one good it must give up increasing amounts of the other good

Back 15

Law of Increasing Opportunity Costs

Front 16

Means to Economic Growth:

Back 16

More land & labor, changes in technology, international trade, investment in capital

Front 17

Most important means to economic growth

Back 17

Investment in Capital

Front 18

Pleasure, happiness or satisfaction obtained from consuming a good or service

Back 18

Utility

Front 19

Collection of specific economic units treated as if they were one unit

Back 19

Aggregate

Hint 19

many become one

Front 20

Need to make choices because economic wants exceed economic means

Back 20

Economizing Problem

Hint 20

problem of the economy

Front 21

Schedule or curve showing various combinations of two products a consumer can purchase with specific money income

Back 21

Budget Line

Hint 21

budget constraint

Front 22

Combinations of goods/services a society can produce in a fully employed economy, assuming fixed supplies of resources and fixed technology

Back 22

Production Possibilities Curve (PPC)

Hint 22

PPC