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15 Cards in this Set
- Front
- Back
Natural Resources |
The land, water, metals, animals and other gifts of nature that are available for producing goods and services. |
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Scarcity |
the perpetual state of insufficiency of resources to satisfy people's unlimited wants |
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Economics |
the study of how people transform resources into goods and services to satisfy want and need |
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Consumer Sovereignty |
the ability for consumers (us) to exercise complete control over what goods and services are produced by the economy |
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Econ. Model |
An abstraction of economic reality. it can be expressed pictorially graphically algebraically or in words |
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Ceteris Paribus |
"everything else being equal" |
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Circular flow model |
model chart of the relationships produced by the economy. relationships between households and firms |
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Household |
an econ. unit of one or more persons living under one roof that has a source of income and uses it how it may seem fit |
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Firm |
an econ unit that produces goods and services in the expectation of selling them to households. |
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microeconomics |
a subarea of econ. that analyzes individuals as consumers and producers and specific firms and industries. focuses on the market behavior of firms and households |
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macroeconomics |
a subarea of economics that analyzes the behavior of the economy as a whole. |
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Positive economics |
a subset of econ. that analyzes the way the economy actually opperates |
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Normative Econ. |
a subset of econ. founded on value judgements and leading to assertions of what ought to be |
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Invisible Hand |
guides firms that seek only to satisfy their own self interest to produce precisely those goods and services that consumers want. |
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Econometrics |
the use of statistics to quantify and test econ models |