1. Economics
    study of how people allocate the scarce resources available to them to satisfy their unlimited needs and wants
  2. scarcity
    • limited resources Vs umlimited wants and needs
    • requires making choices and rationing device
    • (free) market economy rationing
    • command economy rationing
  3. rationing device
    any means by which resources and goods are rationed to those who demand them
  4. opportunity cost
    the highest valued alternative one must forego
  5. Laissez fair
    • limited government
    • the inside had
  6. command economy rationing
    • central planning
    • no private ownership of resources
  7. incentives
    • efficient
    • productive growth
    • competitive
  8. PPC
    production possibilities curve (frontier)
  9. GDP
    • Gross Domestic Product
    • the $ value of all goods and services produced in a country iwhin a given period of time.
  10. Macroeconomics
    study of aggregate variables
  11. 3 vital signs of macroeconomics
    • GDP = Gross Domestic Products
    • CPT = Consumer Price Index
    • NRE = Natural Rate of Employment
Card Set
Economic 204 Class at NU