Honors Economics Flashcards
Terms
undefined, object
copy deck
- OPPORTUNITY COST
- The value of the good, service, or time forgone to obtain something else.
- MARGINAL ANALYSIS
- The comparison of marginal ("extra" or "additional") benefits and marginal costs, usually for decision making.
- MACROECONOMICS
- The part of economics concerned with the economy as a whole or major components of the economy.
- MICROECONOMICS
- The part of economics concerned with individual decision-making units, such as a consumer, a worker, or a business firm.
- CONSTANT OPPORTUNITY COST
- An opportunity cost that remains the same as consumers shift purchases from on product to another along a straight-line budget line.
- LAND
- Natural resources ("gifts of nature") used to produce goods and services.
- LABOR
- The physical and mental talent and efforts of people used to produce goods and services.
- CAPITAL
- Human-made resources (buildings, machinery, and equipment) used to produce goods and services.
- INVESTMENT
- The purchase of capital resources.
- Entrepreneurial Ability
- The human talent that combines the other resources to produce a product, make strategic decisions, and bear risks.
-
GROSS DOMESTIC PRODUCT
-
Total market value of all products and services
produced. - MONOPOLISTIC COMPETITION
- A market structure in which many firms sell a differentiated product and entry into and exit from the market are relatively easy.
- ELASTIC DEMAND
- If a specific percentage change in price results in a larger percentage change in quantity demanded. Then E will be greater than one.
- INELASTIC DEMAND
- If a specific percentage change in price produces a smaller percentage change in quantity demanded. Then E will be less than 1.
- UNIT ELASTICITY
- When the percentage change in price and the resulting percentage change in quantity demanded are the same.