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19 Cards in this Set
- Front
- Back
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Economics: definition
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A social science concerned with choosing among alternatives involving scare resources.
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Macroeconomics
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The study of economics from the viewpoint of the entire (aggregate or total) economy.
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Economics: concerns
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The efficient utilization or management of limited productive resources (labor, land, capital and entrepeneurship) for the purpose of attaining the maximum satisfaction of human material wants
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Macroeconomics: concepts
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inflation
GDP toal employment/unemployment central banking system |
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Microecomics: definition
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The study of economics from the viewpoint of individual economic units.
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Microeconomics analyzes ...
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individual sectors--
households, businesses, gov't and foreign markets industries firms |
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Fallacy of Composition
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Erroneously assuming that what is true of a part must necessarily also be true of the whole.
e.g. Assuming that what is true for one firm must be true for the entire industry. |
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Ceteris Paribus
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"All things equal"
"All other things unchanged." |
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Factors of Production
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Labor
Land Capital Entrepeneurship |
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Money Payment for Labor
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Wages
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Money Payment for Land
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Rent
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Money Payment for Capital
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Interest
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Money Payment for Entrepeneurship
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Profits
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The Economizing Problem
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There are limited resources and unlimited human wants.
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Market
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Any institution or mechanism that brings together buyers and sellers of a particular good or service.
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Demand
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Deals with the BUYER of goods or services
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Demand Schedule
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A schedule of prices and the quantities that buyers are willing and able to purchase at each price.
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Demand Curve
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A graphical representation of the deman schedule
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Law of Demand
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There is an inverse relationship between the price of a good and the quantities that buyers are willing and able to purchase of that good, all other things unchanged
Price Up - Qty D Down Price Down - Qty D Up |
