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19 Cards in this Set
- Front
- Back
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Economics
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Study of scarcity and choice
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individual choice
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decisions by individuals about what to do and what not to do
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Economy
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system that coordinates choices about production with choices about consumption and distributes goods and services to people that want them
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Market Economy
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Production and consumption are the result of decentralized decisions by many firms and individuals
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Command Economy
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industry is publicly owned and there is central authority to making production and consumption decisions
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Property Rights
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establish ownership and grant individuals the right to trade goods and services with each other
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Marginal analysis
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study of decision
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resource
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anything that can be used to produce something else
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land (resources)
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timber, water, minerals, and all other resources that come from nature
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labor
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effort of workers
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capital
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machinery, buildings, tools, and other manufactured goods used to make other goods and services
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entrepreneuraship
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risk taking, innovation, and the organization of resources for production
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scarce
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when not enough resource is available
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opportunity cost
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the value of what you must give up when you make a particular choice
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microeconomics
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branch of economics that focuses on how individuals make decisions and how these decisions interact
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macroeconomics
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focuses on the overall ups and downs of the economy
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economic aggregates
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economic measures such as the unemployment rate, the inflation rate, and gross domestic product
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positive economics
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analysis that is used to answer questions about the way the world works, questions that have definite right and wrong answers
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normative economics
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analysis that involves saying how the world should work
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