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Details Title: Macro Description: Chap. 1 Total Flash Cards: 23 Created: 07/11/2006 07:00:22	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term average benefit Definition the total benefits of n units of activity divided by n. Term average cost Definition the total cost of n units of activity divided by n Term economics Definition the study of how individuals make choices under conditions of scarcity and the resulting effects Term economic surplus Definition the difference between the benefits of taking the action and the cost of taking the action Term macroeconomics Definition the subfield of economics that concentrates on the performance of the national economy and the effects of governmental policies Term marginal benefits Definition the extra benefit experienced as a result of one unit increases in the amount of activity chosen. Term marginal cost Definition the extra cost experienced as a result of one unit increase in the amount of activity chosen Term microeconomics Definition the subfield of economics that concentrates on the behavior of individual markets Term normative economic principle Definition a principle that says how people should behave Term opportunity cost Definition the value of the next best alternative not selected Term positive economic principle Definition a principle that predicts how people will behave Term rational person Definition a person with well-defined goals and tries to achieve them Term sunk cost Definition cost that cannot be recovered regardless of the alternative chosen Term constant Definition a value in an equation that is fixed Term dependent variable Definition the variable that is caused by or is being determined in an equation Term equation Definition a mathematical statement of the relationship between two or more variables Term independent variable Definition the variable or variables that cause or determine the relationship in an equation Term rise Definition when calculating slop, the vertical distance a straight line travels between any two points Term rise Definition when calculating slope, the vertical distance a straight line travels between any two points Term run Definition when calculating slope, the horizontal distance a straight line travels between any two points Term slope Definition in a straight line, the ratio of the vertical distance to the corresponding horizontal distance between any two points Term variables Definition items thought to be related which can take on different numerical values Term vertical intercept Definition the value of the dependent variable when the value of the independent variable is zero