1a
Microeconomics- Ex.households, workers, businesses
Macroeconomics- Ex of issues. economic growth, unemployment, inflation, and trade balance.
focuses on the actions of individual agents within the economy.
the branch of econ that focuses on issues of the economy.
Opportunity cost
Marginal analysis
examining the benefits and costs of choosing a little more or little less of a good.
demand
Quantity demanded
Law of demand
if price ^ the demand goes down
if price goes down, the demand goes ^
the amount of some good or service consumers are willing and able to purchase at each price
total number of units of goods/service consumer are willing to purchase at a given price
keeping all other variables that affect demand constant.
the social science that studies how to best satisfy human needs and wants.
Economics
Law of diminishing marginal utility
Ex. the first slice of pizza brings more satisfaction than the fifth slice.
Law of diminishing returns
a person receives more of a good, the additional utility from each additional unit of the good declines
additional increments of resources to producing a good or service are added, the marginal benefit from those additional increments will decline.
Certeris paribus
Latin phrase meaning "other things being equal"
an economy where economic decisions are passed down from the gov't authority and where the gov't owns the resources.
ex. ancient eygpt, communism, cuba and north korea.
Command economy
satisfaction, usefulness, or value one obtains from consuming goods and services.
What can change the quantity demanded?
What can change the demand?
where is each located?
a change in price, quantity demand is a point found anywhere on the demand curve
(PRICE WILL NEVER SHIFT DEMAND CURVE)one of the five shifters, it's the demand curve
economy where economic decisions are decentralized, private indivi own resources, and busines supply goods and sercvices based on demand
interaction between potential buyers and seller
system where private individuals or groups of private individuals own and operate the means of production.
Market economy
Market; a combination of demand supply
Private enterprise
when it is impossible to produce more of on good/service without decreasing the quantity produced of another good/service
the mix of goods produced represent the mix that society most desires
Productive efficiency
Allocative efficiency
government = 100%
private = 0%
gov>50%
priv<50%
gov<50%
priv>50%
communism
socialism
free market