Term
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Definition
| the limited nature of society's resources |
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Term
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Definition
| the study of how society manages its scarce resources |
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Term
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Definition
| the property of society getting the most it can from its scarce resources |
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Term
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Definition
| the property of distributing economic prosperity fairly among the members of society |
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Term
| The ten principles of economics |
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Definition
1. people face tradeoffs
2. the cost of something is what you give up to get it
3. rational people think at the margin
4. people respond to incentives
5. trade can make everyone better off
6. markets are usually a good way to organize economic activity
7. governments can sometimes improve market outcomes
8. a country's standard of living depends on its ability to produce goods and services
9. prices rise when the government prints too much money
10. society faces a short-run tradeoff between inflation and unemployment |
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Term
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Definition
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Term
| The cost of something is ________ you _______ up to ______ it. |
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Definition
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Term
| _________ people think at the ________. |
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Definition
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Term
| People ________ to ___________. |
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Definition
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Term
| __________ can make everyone _________ off. |
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Definition
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Term
| Markets are usually a _________ way to _______ economic activity. |
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Definition
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Term
| Governments can sometimes ________ market ________. |
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Definition
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Term
| A countries _________ of living depends on its ability to _________ goods and _______. |
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Definition
| standard, produce, services |
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Term
| Prices ________ when the government _______ too much ________. |
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Definition
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Term
| Society faces short-run ________ between _________ and ___________. |
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Definition
| tradeoffs, inflation, unemployment |
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Term
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Definition
| a curve that shows the short-run tradeoff between inflation and unemployment |
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Term
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Definition
| an increase in the overall level of prices in the economy |
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Term
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Definition
| the amount of goods and services produced from each hour of a worker's time |
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Term
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Definition
| a situation in which a market left on its own fails to allocate resources efficiently |
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Term
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Definition
| the impact of one person's actions on the well-being of a bystander |
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Term
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Definition
| the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
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Term
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Definition
| an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services |
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Term
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Definition
| whatever must be given up to obtain some item |
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Term
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Definition
| small incremental adjustments to a plan of action |
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Term
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Definition
| a visual model of the economy that shows how dollars flow through markets among households and firms |
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Term
| production possibilities frontier |
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Definition
| a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology |
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Term
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Definition
| the study of how households and firms make decisions and how they interact in markets |
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Term
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Definition
| the study of economy-wide phenomena, including inflation, unemployment, and economic growth |
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Term
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Definition
| claims that attempt to describe the world as it is |
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Term
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Definition
| claims that attempt to prescribe how the world should be |
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Term
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Definition
| how people make decisions, how they interact with one another, analyze forces and trends |
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Term
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Definition
| how people make decisions, how they interact with one another, analyze forces and trends |
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Term
| In relation to pie how can efficiency and equity be described |
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Definition
| efficiency refers to the size of the pie, equity to how the pie is divided |
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Term
| The three principles concerning economic interactions. |
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Definition
1. trade can make everyone better off
2. markets are usually a good way to organize economic activity
3. governments can sometimes improve market outcomes |
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Term
| What are the three economic principles that concern the workings of the economy as a whole? |
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Definition
1. a country's standard of living depends on its ability to produce goods and services
2. prices rise when the government prints too much money
3. society faces a short-run tradeoff between inflation and unemployment |
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Term
| what are the four economic principles that reflect how people make decisions? |
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Definition
1. people face tradeoffs
2. the cost of something is what you give up to get it
3. rational people think at the margin
4. people respond to incentives |
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