Economics Chapter 1
Terms
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- Macroeconomics
- The study of the determination of economic aggregates such as total output, price, employment and growth.
- Efficiency
- Resources available to the nation are organized so as to produce the largest possible amount of the goods and services while using the least resources.
- Traditional Economy
- An economy which behaviour is based mostly on tradition.
- Factors Of Production
- Resources used to produce goods and services. Land, Labor, Capital.
- Production Possibilities Boundary
- A curve showing which alternative combinations of commodities can just be attained if all available resources are used efficiently. The boundary between attainable and unattainable output conditions.
- Services
- Intangible Commodities, Haircuts, Medical Care.
- Production
- The act of making goods or services.
- Opportunity Cost
- The cost of using resources for a certain purpose, measured by the benefit given up by not using them in their best alternative use.
- Economy
- A system in which scarce resources are allocated among competing uses.
- Free-market Economy
- An economy in which most economic decisions are made by private firms and households.
- Resources Allocation
- The allocation of an economy's scarce resources of land, labor, capital among alternative uses.
- Microeconomics
- The study of the causes and consequences of the allocation of resources, affected by price.
- Specialization of Labor
- The specialization of individual workers in the production of particular goods and services.
- Goods
- Tangible Commodities. Cars, Shoes.
- Mixed Economy
- An economy in which some economic decisions are made by firms and households and some by Gov't.
- Main Characteristics Of The Market Economy.
- Self-Interest, Incentives, Market Prices & Quantities, Institutions.
- Division of Labor
- The breaking up of a productive process into a series of specialized tasks, each done by a different worker.
- Command Economy
- An economy in which most economic decisions are made by a central planning authority.
- Barter
- An economic system: goods and services traded directly for other goods and services.
- Consumption
- The act of using goods or services to satisfy wants.