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27 Cards in this Set

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Economics
Human Behavior in the face of scarcity
Theory
Set of related principles providing insight into the operations of some phenomenon
Principles
Statements of cause-and-effect relationships and/or theories that have been tested thoroughly many times and survived
Microeconomics
The study of individual human behavior in response to scarcity
Normative Economics


Positive Economics
Study that provides insights into what ought to be

Study that provides insight into what is
Firms
Individuals or groups that use resources to supply goods and services usually but not always for profit
Resources
Means or ingredients available for the productions of goods and services
Labor
The capacity for human effort of both mind and muscle available for the production of goods and services
Capital
The non-human ingredients that contribute to the production of goods and services
Budget Line or Income Constraint
Lines of obtainable combinations; all combinations of goods and services available when all of the chooser's income (Y) is fully utilized, given his/her income and the prices of the goods and services
Indifference Curve
A schedule or locus of points showing the different consumptions or combinations of two items among which the consumer is indifferent
Utility
the satisfaction that a consumer obtains from the goods and services that he or she she consumes (feelings)
Marginal Utility
the change in total utility to a consumer that reults from a one-unit change in the consumption level of a given item.
Demand
The buyers of the good
Supply
Individuals and/or firms supplying the good
Market
Group of sellers and buyers that are in touch with each other in order to buy and sell
Buyers
Consumers in good markets or firms in resource market
Sellers
firms or individuals willing to sell the good in question
Model
A theory or mechanism that connects two or more events
Households (Consumers)
A group or individual who buys and uses goods and services to satisfy wants
Governments
Groups that set and enforce property rights to goods, services, and/or resources
Goods
A physical item that is valued by a consumer because it satisfies a want
Services
A set of behaviors by a firm or supplier that is valued by a consumer because it satisfies a want
Labor
The capacity for human effort of both mind and muscle available for the production of goods and services
Technology
The state of the arts available for combining and transforming resources into goods and services
Property Rights
Rules dictating the control by individuals over goods and resources as established by the government
Util
An artificial construct to measure utility