Term
| The slope of a tangent line on a curve's minimum or maximum will be what? |
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Definition
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Term
| What does Ceteris Paribus Mean? |
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Definition
"Other Things Equal"
"All Else Equal" |
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Term
| What is the Ceteris Paribus Assumption? |
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Definition
| For the purpose of a statement screening out factors that perturb a relation of interest |
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Term
| Where are economic decisions made? |
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Definition
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Term
| What does it mean to make economic decisions at the margin? |
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Definition
| Decisions are made by examining the consequences of making relatively small changes from the existing (current) situation. |
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Term
| What is Marginal Analysis? |
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Definition
| Economic Decisions made at the margin. |
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Term
| What does Marginal Analysis Allow One to Do? |
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Definition
| It allows one to conceptualize how much of a variable is enough. |
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Term
| What is the late night phone call example? |
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Definition
| A hypothetical student faces the choice at some point that they are studying late at night for a test the next day, or hanging out with a significant other. |
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Term
| What is the correct answer to the late night phone call example? |
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Definition
| The significant other asks them out, but they deny the request, claiming that their studying is more important than the significant other but only at the margin. |
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Term
| What is not the issue of the late night phone call example? |
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Definition
The total value of studying VS.
The total value of time spent with significant other |
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Term
| What is the issue of the last night phone call example? |
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Definition
Value of Studying the next two hours VS.
Value of time with significant other the next two hours |
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Term
| The conditions of a situation determine the what? |
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Definition
| The marginal benefits and costs of a situation. |
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Term
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Definition
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Term
| You can have too much of what? |
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Definition
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Term
| When do you have too much of a good thing? |
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Definition
| When marginal benefits become less than the marginal cost (including what we forego to get more). |
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Term
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Definition
| Omit or decline to take (something pleasant or valuable); go without. |
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Term
| What type of science is economics? |
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Definition
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Term
| What is the fundamental economic problem? |
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Definition
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Term
| What are examples of variables that are scarce? |
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Definition
Admissions to Harvard
----------------------- |
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Term
| How Are Admissions to Harvard an Example of Scarcity? |
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Definition
| There are less available spaces for students then there are the number of students applying for those spaces. |
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Term
| What Problem is there in the Admissions to Harvard Example of Scarcity? |
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Definition
| Harvard must choose how to allocate the scarce number of available spaces to the applicants and must forego opportunities to teach those applicants that they reject. |
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Term
| In the Admissions to Harvard Example of Scarcity what is generated between the applicants due to the number of applicants being larger than the number of available spaces? |
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Definition
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Term
| Scarcity is faced by what entities? |
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Definition
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Term
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Definition
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Term
| What is the Scarcity Problem? |
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Definition
| Unlimited Wants are limited by limited resources. All resources are limited. |
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Term
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Definition
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Term
| What do Goods and Services Do? |
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Definition
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Term
| What are synonyms for resource? |
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Definition
| Input and Factors of Production |
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Term
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Definition
| All naturally occurring resources |
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Term
| What is an example of land? |
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Definition
Farm Land
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Oil
----
Wood
---
Water |
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Term
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Definition
| Physical and mental talents of men and women usable in production. |
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Term
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Definition
| All manufactured aids to production. |
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Term
| What are some examples of capital? |
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Definition
Machines
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Tools
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Buildings
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Infrastructure |
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Term
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Definition
| An actual scarce resource that is a manufactured aid to production. |
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Term
| What is Financial Capital? |
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Definition
| Money used to obtain real capital. |
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Term
| What are the four types of resources? |
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Definition
Land
-----
Labor
-----
Capital
-----
Entrepreneurial Ability |
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Term
| What are examples of things entrepreneurs do? |
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Definition
Organize Production
--------------------
Manage Production
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Takes Risks
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Innovates Often
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Makes Difficult Non-Routine Decisions
------------------- |
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Term
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Definition
| Take existing resources and find new ways to use them |
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Term
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Definition
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Term
| What are Factor Payments? |
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Definition
| Payments made to the owner of a scarce resource for the goal of acquiring scarce resources. |
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Term
| What is an example of a factor payment made on land? |
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Definition
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Term
| What is an example of a factor payment made on labor? |
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Definition
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Term
| What is an example of a factor payment made on capital? |
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Definition
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Term
| What is an example of a factor payment made on entrepreneurship? |
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Definition
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Term
| What do factor payments represent? |
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Definition
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Term
| Factor Payments are a valuation of a resource's what? |
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Definition
| Next best alternative use. |
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Term
| What is a labor/leisure choice? |
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Definition
| A worker chooses between labor and leisure depending on the amount of pay from labor. |
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Term
| How is Labor defined in the labor/leisure choice? |
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Definition
| Time spent working for pay |
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Term
| How is Leisure defined in the labor/leisure choice? |
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Definition
| Time Not spent working for pay |
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Term
| The Cost of Capital is what? |
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Definition
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Term
| Most Entrepreneur's transition into an entrepreneur from what? |
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Definition
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Term
|
Definition
| The entrepreneur's salary |
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