FOUNDING PRINCIPLES
Being in short supply
SCARCITY
the part of economics concerned with single factors and the effects of individual decisions
MICROECONOMICS
To fail to utilize fully
UNDERUTILIZATION
marketplace in which final goods or services are offered for purchase by consumers, businesses, and the public sector.
Product Markets
Absolute Advantage
"All other things remaining equal"
CETERIS PARIBUS
the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity
MACROECONOMICS
1. Change in resource quantity
2. Change in technology
3. Change in trade
3 SHIFTERS OF THE PPC
A balance achieved between two desirable but incompatible features; a compromise
TRADE-OFF
is the branch of economics that concerns the description and explanation of economic phenomena.
Positive Economics
as additional units of a good are manufactured, the opportunity cost associated with that production will also increase.
Law of Increasing Opportunity Costs
refers to markets where services of the factors of production are bought and sold
Factor markets
Comparative Advantage
laws and forces of supply and demand are free from any intervention by a government
FREE MARKET SYSTEM
is a part of economics that expresses value or normative judgments about economic fairness
Normative Economics
all who are able and willing to work are employed.
Full Employment
letting things take their own course, without interfering.
LASSEZ FAIRE
consist of any tangible assets that an organization uses to produce goods or services such as office buildings, equipment and machinery
Capital goods
the part of an economy that is controlled by the government
Public Sector