ch 1 Macroeconomics

The condition in which humans wants are forever greater than the available supply of time, goods, and resources.

• The basic categories of inputs used to produce goods and services. Resources are also called factors of production. Categories:
• Land
• Labor
• Capital

A shorthand expression for any natural resouce provided by nature

The mental and physical capacity of workers to produce goods and services.

The creative ability of individuals to seek profits by taking risk and combining resorces to produce innovative products

The physical plants, machinary, and equipment used to produce other goods. Capital goods are human-made goods that do not directly satisfy human wants

The study on how society chooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants

The branch of economics that studies decision making for the economy as a whole.

The branch of economics that studies decision making by a single individual, household, firm, industry, or level of goverment.

A simplified description of reality used to understand and predict the relationship between variables.

A latin phrase that means while certain variables change, "all other things remain unchanged".

An analysis limited to statements that are verifiable

An analysis based on a value judgment.

A positive association between two variables. When one variable increases, the other variable increases, and when one variable decreases, the other variable decreases.

A negative association between two variables. When one variable increases, the other decreases, and when one variable decreases, the other variable increases.

The ratio of the change in the variable on the vertical axis(the rise or fall) to the change in the variable on the horizontal axis(the run)

A zero association between variables. When one variable changes, the other remains unchanged.