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| the study of how people use their scarce resources to satisfy their unlimited wants. |
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| The inputs. or factors of production used to produce the goods and services that people want. |
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| The physical and mental effort used to produce goods and services. |
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| Buildings, equipment, and human skill used to produce goods and services. |
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| "Gifts of nature" used to produce goods and services; included renewable and exhaustible resources. |
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| Managerial and organizational skills needed to start a firm. combined with the willingness to take risk. |
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| payment to resource owners for labor. (Karl Marx -> Labor and Value) |
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| Payment to resource owners for the use of their capital. |
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| Payment to resource owners for use of their natural resources. |
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| the reward for entrepreneurial ability; the revenue from sales minus the costs of resources used by the entrepreneur. |
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| a tanginable item used to satisfy human wants. |
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| An activity used to satisfy human wants. |
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| occurs when the amount people desire exceeds the amount available at a zero price. |
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| A set of arrangements through which buyers and sellers carry out exchange at mutually agreeable terms. (Varieties of Markets) |
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| A market in which a good or service is bought and sold. (Consumer) |
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| A market in which a resource is bought or sold. (business/industry) |
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| A diagram that outlines the flow of resources, products, income, and revenue among economic decision makers. |
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| Incremental, additional, or extra; used to describe a change in an economic variable. |
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| The study of the economic behavior in particular markets. such as that for computers or unskilled labor. |
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| the study of the economic behavior of entire economies. |
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| Economic Theory/ Economic Model |
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| A simplification of reality used to make predictions about cause and effect in the real world. |
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1. Variable: a measure, such as a price or quantity, that can take on different values.
2. Other-things-constant-assumptions: The assumption, when focusing on the relation among key economic variables, that other variables remain unchanged.
3. Behavioral Assumption: an assumption that describes the expected behavioral of economic decision makers.
4. Hypothesis: A theory about relationships among key variables (Form & Test) |
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