Help
Options
Term
marginal thinking
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Term
economic thinking
Remaining cards (24)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Macro Chapter 1
| Term | Definition |
|---|---|
| marginal thinking | the evaluation of whether the benefit of one more unit of something is greater than its cost (page 15) |
| economic thinking | a purposeful evaluation of the available opportunities to make the best decision possible (page 15) |
| macroeconomics | the study of the overall aspects and workings of an economy (page 7) |
| economics | the study of how individuals and society allocate their limited resources to satisfy their unlimited wants (page 6) |
| trade | the voluntary exchange of goods and services between two or more parties (page 19) |
| incentives | factors that motivate a person to exert effort (page 8) |
| opportunity cost | the highest-valued alternative that must be sacrificed to get something else (page 13) |
| scarcity | the limited nature of society's resources, given society's unlimited wants and needs (page 6) |
| markets | systems that bring buyers and sellers together to exchange goods and services (page 17) |
| comparative advantage | the situation where an individual, business, or country can produce at a lower opportunity cost than a competitor can (page 19) |
| Barter | involves individuals trading a good they already have or providing a service in exchange for something they want. (page 17) |
| microeconomics | the study of the individual units that make up the economy (page 7) |
| productive resources | the inputs used in the production of goods and services to make a profit |
| factors of production | Capital, Entrepreneurship, Land, Labor |
| Land | any natural resource, including actual land, but also trees, plants, livestock, wind, sun, water, etc. |
| economic Capital | anything that’s manufactured in order to be used in the production of goods and services. |
| Labor | any human service—physical or intellectual. Also referred to as human capital |
| human capital | Labor |
| Entrepreneurship | the ability of someone (an entrepreneur) to recognize a profit opportunity, organize the other factors of production, and accept risk. |
| economic goods | goods or services a consumer must pay to obtain; also called scarce goods |
| free goods | goods or services that a consumer can obtain for free because they are abundant relative to the demand |
| circular flow diagram | a diagram indicating that the economy consists of households and firms interacting in a goods-and-services market and a labor market |
| goods and services market | a market in which firms are sellers of what they produce and households are buyers |
| labor market | the market in which households sell their labor as workers to businesses or other employers |
| product market) | goods and services market |
Created by:
v.virgil
Popular Economics sets