Term
|
Definition
| the value of the next best alternative that must be given up because of that decison (e.g. going to school instead of going to work) |
|
|
Term
|
Definition
| a deliberate simplification of a relationship used to explain how those realationships work |
|
|
Term
|
Definition
| two variable thatgo up or down together. Does not necessarily imply causation. |
|
|
Term
|
Definition
| A simplified, small-scale version of some aspect of the economy. Often expressed by graphs or equations, or given in words |
|
|
Term
|
Definition
| Ignoring many details so as to focus on the most important elements of a probelm. |
|
|
Term
|
Definition
| The instruments provided by nature or people that are used to create goods or services. (e.g. land, labor, capital) |
|
|
Term
|
Definition
| The choice that best serves the objectives of the decision maker. Selected by implicit or explicit comparison of the alternative choices. |
|
|
Term
|
Definition
| The goods and services a firm provides |
|
|
Term
|
Definition
| The resources a firm or economy uses to produce its outputs. |
|
|
Term
| Production Possibilities Frotier (PPF) |
|
Definition
| Shows the different combinations of various goods, any one of which a producer can turn out given the avaliable resources and existing technology. |
|
|
Term
|
Definition
| Shows the different combinations of various goods, any one of which a producer can turn out given the avaliable resources and existing technology. |
|
|
Term
| Principle of Increasing Costs |
|
Definition
| as the production of a good expands, the opportunity cost of producing another unit generally increases. |
|
|
Term
| Principle of Increasing Costs |
|
Definition
| as the production of a good expands, the opportunity cost of producing another unit generally increases. |
|
|
Term
|
Definition
| The absence of waste, given the current technological knowledge, there is no way one could produce larger amounts of any output without using larger amounts of inputs. Working at the PPF. |
|
|
Term
|
Definition
| Society's decisions on how to divide up its scarce input resources among the different outputs produced in the economy. |
|
|
Term
|
Definition
| Breaking up a task into a number of smaller, more specialized tasks so that each worker can become more adept at a partticular job. |
|
|
Term
|
Definition
| When one firm canproduce a good more efficently than another firm. |
|
|
Term
|
Definition
| A form of economic organization in which resources allocation decisions are left up to individual producers and consumers act in their own best interests without central direction. |
|
|
Term
|
Definition
| the labor, machinery, buildings and natural resoures used to make outputs |
|
|
Term
|
Definition
| The labor, machinery, buildings and natural resoures used to make outputs |
|
|
Term
|
Definition
| the goods and services that consumers want to acquire |
|
|
Term
|
Definition
| A measure of the size of the economy - the total amount an economy produces in a year. |
|
|
Term
|
Definition
| A measure of the size of the economy - the total amount an economy produces in a year. |
|
|
Term
|
Definition
| Ecnomy where the exports and imports are a realtively large share of the GDP |
|
|
Term
|
Definition
| Economy where the exports and imports are a realtively small share of the GDP |
|
|
Term
|
Definition
| A period of time where the output of a society falls |
|
|
Term
|
Definition
| Sums of money that certain individuals recieve as outright grants frin the governemnt rather than as payment for services rendered. |
|
|
Term
|
Definition
| A tax that rises and falls in relation to income. |
|
|
Term
|
Definition
| Economy with some public influence over the workings of a free market. Has both public ownership and private property. |
|
|
Term
|
Definition
| The instruments provided by nature or people that are used to create goods or services. (e.g. land, labor, capital) |
|
|
Term
|
Definition
| the value of the next best alternative that must be given up because of that decison (e.g. going to school instead of going to work) |
|
|
Term
|
Definition
| The choice that best serves the objectives of the decision maker. Selected by implicit or explicit comparison of the alternative choices. |
|
|
Term
|
Definition
| The goods and services a firm provides |
|
|
Term
|
Definition
| The resources a firm or economy uses to produce its outputs. |
|
|
Term
| Production Possibilities Frontier |
|
Definition
| Shows the different combinations of various goods, any one of which a producer can turn out given the avaliable resources and existing technology |
|
|
Term
| Principle of Increasing Costs |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Allocation of Scarce Resources |
|
Definition
|
|
Term
| Allocation of Scarce Resources |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
