Shared Flashcard Set

Details

Ch.1 Ten Principles of Economics
describes the ten principles of economics
17
Economics
Undergraduate 1
02/07/2011

Additional Economics Flashcards

 


 

Cards

Term
scarcity
Definition
society hs limited recources and hterefore cannot produce alll the goods and services people wish to have
Term
economics
Definition
the study of how scoiety manages its scare resources
Term
efficiency
Definition
the property of society getting the most it can from its scarce resources
Term
equity
Definition
the property of distributing economic prosperity fairly among the members of society
Term
opprotunity cost
Definition
whatever must be given up to obtain some item
Term
rational people
Definition
people who systematically and purposefully do the best they can to achieve their objectives
Term
marginal changes
Definition
small incremental adjustments to a plan of action
Term
incentive
Definition
something that induces a person to act
Term
markey economy
Definition
an economy that allocated recources through the dectralized decisions of many firms and households as they interact in markets for goods and services
Term
property rights
Definition
the ability of an individual to own and exercise control over scarce resources
Term
market failure
Definition
a situation in which a market left on its own fails to allocate resources efficiently
Term
externality
Definition
the impact of one person's actions on the wellbeing of a bystander -- can lead to a market failure
Term
market power
Definition
an example of an externality -- the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
Term
productivity
Definition
the quantity of goods and services produced from each hour of a worker's time. almost all variation in living standards among countries is attributable to differences in countries' productivities.
Term
inflation
Definition
an increase in the overall level of prices in the economy
Term
short term effects of monetary injections
Definition

- stimulates the overall level of spending and thes the demand for goods and services

- higher demand -->firms raise the prices of their goods. thus an increase in the goods produced and labor hired

- more hiring= lower unemployment

Term
business cycle
Definition
flunctuations in economic activity, such as employment and production
Supporting users have an ad free experience!