# Shared Flashcard Set

## Details

Macro
Chap. 1
23
Economics
07/11/2006

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
Supporting users have an ad free experience!