Ultimate Econ Study Guide Exam 1 Flashcards

the study of how humans make decisions in the face of scarcity.

that human wants for goods, services and resources exceed what is available.

the way in which different workers divide required tasks to produce a good or service

produces a greater quantity of output

when workers or firms focus on particular tasks for which they are well suited within the overall production process

units decline

focuses on actions or individual's agents within the economy like households, workers, businesses

is the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance

policy that involves altering the level of interest rates, the availability of credit in the economy and the extent of borrowing

Nations Central Bank

economic policies that involve government spending and taxes

Nations Legislative Body

simplified representation of how two or more variables interact with each other

wages, salaries

labor

typically an agricultural economy where things are done the same as they have always been done

an economy where economic decisions are passed down from government authority and where the government owns the resources

an economy where economic decisions are decentralized private, private individuals own resources, and businesses supply goods and services based on demand

interaction between potential buyers and sellers, combo of supply and demand

system where private individuals own and operate production

Mixed!

True

heavily regulated economies create black markets

trend in which buying and selling in markets cross national borders

goods and services that a nation produces at home and sells abroad

goods and services that are produced abroad and then sold at home

measures the size of total production in an economy

all consumption combinations of goods that someone can afford, given the prices and all income is spent

all possible combinations of consumption that someone can afford given the prices of goods and the individuals income

indicates what one must give up to obtain what he or she desires

examining the benefits and costs of choosing a little more or a little less of a good

satisfaction usefulness, or value one obtains from consuming goods and services

first slice of pizza eaten brings more satisfaction than the sixth

costs that were incurred in the past and cannot be recovered

Efficient combination of two products that an economy can produce

the increments of resources to producing a good or service are added, the benfit of them will decline

when it is impossible to prduce more of one good withou decreasing another good

when the mix of goods produced represents the mix that society most desires

when a country can produce a good at a lower opportunity cost than another country

concept that individuals self interested behavior can lead to positive social outcomes

the amount of a good or servie consumers are willing and able to purchase

what a buyer pays for a unit of the specific good or service

the total number of units of a good or service consumers are willing to purchase at a given price

If price goes up, then demand goes down

If price goes down, demand goes up

tabl that shows range of prices for a certain good or service for quantity demanded at each price

a graph between price and quantity demanded

X

Y

amount of some good or service a producer is willing to supply at each price

total number of units of a good or service producers are willing to sell at a given price

if price goes up, then quantity supplied goes up

If price goes down, then quantity supplied goes down

when quantity demanded = quantity supplied

price where quantity demanded is equal to quantity supplied

quantity at which quantity demanded and quantity supplied are equal for a certain price level

quantity supplied exceeds quantity demanded

quantity demanded exceeds quantity supplied

"other things being equal"

Affects Demand

Affects Demand

Affects Demand

Affects Demand

Affects Demand

product whose demand rises when income rises

a product whose demand falls when income rises, rises

a good or service that we can use in place of another good or service

goods or services used together

the combination of labor, materials, and machinery to produce goods

Affect Supplies

Affect Supplies

Affect Supplies

Affect Supplies

laws that government enact to regulate prices

rising above a certain level, legal max price

from falling below a given level, lowest price

loss in social surplus when market produces inefficient quantity