Eco exam 1

Study of how individuals + societies choose to use the scarce resources that nature and previous generations have provided

Examines the functioning of individual industries and the behavior of individual decision making units- that is, firms + households.

examines eco behavior of aggregates- income, employment, output, and so on- on a national scale

best alternative that we forgo, or give up, when we make a choice or decision.

compilation of data that describe phenomenom and facts

analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action.

device used to analyze the relationship between two variables while the value of other variables are held unchanged

things that are produed and then used in the production of other goods and services

ricardos theory that specialization and free trade will benifet all tradng parties, even those that may be "absolutely" more efficient producers

producer can produce product at a lower opportunity cost

A graph that shows all the combonations of goods and services that can be produced if all of societies resources are used efficiently

central government either directly or indirectly sets output targets, incomes, and prices

individual peole and firms pursue their own self-interst without any central direction or regulation

• supply--->demand ON THE INSIDE
• Payment ON THE OUTSIDE

af price falls, quantity demanded rises

TR-TC