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15 Cards in this Set
- Front
- Back
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The land, water, metals, minerals, animals, and other gifts of nature that are available for producing goods and services
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Natural resources
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The perpetual state of insufficiency of resources to satisfy people's unlimited wants
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Scarcity
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The study of how people work together to transform resources into goods and services to satisfy their most pressing wants, and how they distribute these goods and services among themselves.
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Economics
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The ability of consumers to exercise complete control over what goods and services the economy produces ( or doesn't produce) by choosing what goods and services to buy ( or not buy )
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Consumer Sovereignty
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An abstraction of an economic reality. It can be expressed pictorially, graphically, algebraically or in words
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Economic model
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The Latin phrase meaning "everything else being equal."
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Ceteris paribus
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A model of how the economy's resources, money, goods, and services flow between house holds and firms through resource and product markets
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Circular flow model
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An economic unit of one or more persons' living under one roof, that has a source of income and uses it in whatever way it deems fit
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Household
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An economic unit that produces goods and services in the expectation of selling them to households, other firms, or government
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Firm
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A subarea of economics that analyzes individuals as consumers and producers, and specific firms and industries. It focuses especially on the market behavior of firms and households
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Microeconomics
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A subarea of economics that analyzes the behavior of the economy as a whole
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Macroeconomics
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A subset of economics that analyzes the way the economy actually operates
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Positive economies
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A subset of economics founded on value judgments and leading to assertions of what ought to be.
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Normative economies
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Adam Smith's concept of the market, which, as if it were a hand, guides firms that seek only to satisfy their own self-interest to produce precisely those goods and services that consumers
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Invisible Hand
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The use of statistics to quantify and test economic models.
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Econometrics
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