Home > Flashcards > Economics > Microeconomics - Introduction

Details Title: Microeconomics - Introduction Description: Principles of Microeconomics 4th Edition Total Flash Cards: 15 Created: 09/09/2007 18:42:54	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 Natural Resources Definition The lands, water, metals, minerals, animals, and other gifts of nature that are available for producing goods and services. Term Ceteris Paribus Definition The Latin phrase meaning "everything else being equal." Term Microeconomics Definition 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. Term Scarcity Definition The perpetual state of insufficiency of resources to satisfy people's unlimited wants. Term Circular Flow Model Definition A model of how the economy's resources, money, goods, and services flow between households and firms through resource and product markets. Term Macroeconomics Definition A subarea of economics that analyzes the behavior of the economy as a whole. Term Economics Definition 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. Term Household Definition 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. Term Positive Economics Definition A subset of economics that analyzes the way the economy actually operates. Term Consumer Sovereignty Definition 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). Term Firm Definition An economic unit that produces goods and services in the expectation of selling them to households, other firms, or government. Term Normative Economics Definition A subset of economics founded on value judgments and leading to assertions of what ought to be. Term Economic Model Definition An abstractin of an economic reality. It can be expressed pictorially, graphically, algebraically, or in words. Term Invisible Hand Definition 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 want. Term Econometrics Definition The use of statistics to quantify and test economic models.