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| Rewards or penalties for engaging in a particular activity. |
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| The study of how people allocate their limited resources to satisfy their unlimited wants. |
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| Things used to produce goods and services to satisfy people's wants. |
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| What people would buy if their incomes were unlimited |
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| The study of decision making undertaken by individuals (or households) and by firms. |
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| The study of the behavior of the economy as a whole, including such economy-wide phenomena as changes in unemployment, the general price level, and national income. |
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| Total amounts or quantities. Aggregate demand, for example, is total planned expenditures throughout a nation. |
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| A society's institutional mechanism for determining the way in which scarce resources are used to satisfy human desires. |
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| Centralized command and control/ central planning |
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| is when a kind, queen, dictator or an centralized government assumes responsibility for addressing fundamental economic issues. Under this control, this authority decides what items to produce and how many, how scarce resources will be organized, and who can obtain these items. |
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| The price system/ market system |
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| under this system individuals and families own all of the scarce resources used in production. Choices about what and how many items to produce are left to private parties to determine. |
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| the economics systems of the worlds nations are mixed economic systems that incorporate aspects of both centralized command and control and decentralized price system |
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| the assumption that people do not intentionally make decisions that would leave them worse off. |
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| Simplified representations of the real world used as the bases for predictions or explanations. |
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| The assumption that nothing changes except the factor of factors being studied. |
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| Relying on real-world data in evaluating the usefulness of a model. |
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| An approach to the study of consumer behavior that emphasizes psychological limitations and complications that potentially interfere with rational decision making. |
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| The hypothesis that people are nearly, but not fully, rational, so that they cannot examine every possible choice available to them but instead use simple rules of thumb to sort among the alternatives that happen to occur to them. |
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| analysis that is strictly limited to making either purely descriptive statements or scientific predictions; for example, "If A, then B." A statement of what is |
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| Analysis involving value judgements about economic policies; relates to whether outcomes are good or bad. A statement of what ought to be. |
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| A variable whose value is determined independently of, or outside, the equation understudy. |
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| a variable whose value changes according to the changes in the value of one or more independent variables. |
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| A relationship between two variables that is positive, meaning that an increase in one varible is associated with an increase in the other and decrease in one variable is associated with a decrease in the other. |
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| A relationship between two variables that is negative, meaning that an increase in one variable is associated with a decrease in the other and a decrease in one variable is associated with an increase in the other. |
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The change in the y value divided by the corresponding change in the x value of a curve, the incline of the curve.
Slope= rise/run = -/+ |
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