Micro

Front 1

Scarcity

Back 1

Lack of enough resources to satisfy all desired uses of those resources

Front 2

Opportunity Cost

Back 2

The most desired goods or services that are forgone in order to obtain something else

Front 3

Efficiency

Back 3

Maximum output of a good from the resources used in production

Front 4

Economic growth

Back 4

An increase in output, an expansion of production possibilities

Front 5

Market Mechanism

Back 5

The use of market prices and sales to signal desired ouputs (resource allocations)

Front 6

Laissez faire

Back 6

The doctrine of "leave it alone," of nonintervention by goverment in the market mechanism

Front 7

Mixed economy

Back 7

An economy that uses both market signals and government directives to allocate goods and resources

Front 8

Market Failure

Back 8

An imperfection in the market mechanism that prevents optimal outcomes

Front 9

government Failure

Back 9

Government intervention that fails to improve economic outcomes

Front 10

Microeconomics

Back 10

the study of individual behavior in the economy, of the components of the larger economy

Front 11

Income Transfers

Back 11

Payments to individuals for which no current goods or services are exchanged (social security, welfare, unemployment benefits)

Front 12

comparitive Advantage

Back 12

The ability of a country to produce a specific good at a lower opportunity cost than its trading partners

Front 13

Productivity

Back 13

Output per unit of input, such as output per labor hour

Front 14

Capital Intensive

Back 14

Production processes that use a high rate of capital to labor inputs

Front 15

Human Capital

Back 15

the knowledge and skills possessed by the work force