macro

the study of how people use their scarce resources to satisfy their unlimited wants.

the inputs, or factors of production, used to produce the goods and services that people want;

labor, capital, natural resoures, and entrepreneurial ability

The physical and mental effort used to produce goods and services.

the buildings, equipment, and human skills used to produce goods and services.

all the gifts of natureused to produce goods and services;

renewable and exhaustible resources.

The imagination required to develop a new product or process, the skill needed to organize production, and the willingness to take the risk of profit or loss.

a profit-seeking decision maker who starts with an idea, organizes an enterprise to bring that idea to life, and assumes all the risk of the operation.

payment to resource owners for their labor.

payment to resource owners for the use of their capital.

payment to resource owners for the use of their natural resources.

reward for entreprenurial ability; sales revenue minus resource cost.

a tangible product used to satisfy the human want.

an activity, or intangible product, used to satisfy human wants.

when the amount people desire exceeds the amount available at a zero price.

a set of arrangements by which buyers and sellers carry out exchange at mutually agreeable terms.

a market in which a good or service is bought or sold.

a diagram that traces the flow of resources, products, income, and revenue among economic decision makers.

when a individual tries to maximize the expected benefit achieved with a givenb cost or to minimize the expected cost of achieving a given benefit.

incremental, additional, or extra; used to describe achange in an economic variable.

study of the economic behavior in particular markets, such as that for computers or unskilled labor.

study of the economic behavior of entire economies, as measured, for example, by total production and employment.

rise and fall of economic activity relative to the long-term growth trend of the economy; also called business cycles.

simplification of reality used to make predictions about cause and effect in the real world.

a measure, such as price or quantity, that can take on different values at different times.

the assumption, when focusing on the relation among key economic variables, that remain unchanged; in Latin, cereris paribus.

an assumption that describes the expected behavior of economic decision makers, what motivates them.

a statement that can be proved or disproved by reference to facts.

when which reflects an opinion, which cannot be proved or disapproved by reference to the facts.

the incorrect belief that what is true for the individual, or part, must necessarily be true for the group, or the whole.

unintended consequences that may develop slowly over time as people react to events.

the zero point

x-axis

y-axis

one whose value depends on that of the independent vsriable.

one whose value determines that of the dependent variable.

one that occurs when two variables increase or decrease together; the two variables move in the same direction.

occurs when two variables move in opposite directions; when one increase, the other decreases.

a measure of how much the verticle variable changes for a given increase in the horizontal variable; the vertical change between two points divided by the horizontal increase.

a straight line that touches a curve at a point but does not cut or cross the curve; used to measure the slope of the curve at a point.

the value of the best alternative forgone when an item or activity os chosen.

cost that has already been incurred, cannot be recovered, and thus is irrelevant for present and future economic decisions.

the individual, firm, region, or country with the lowest opportunity cost of producing a particular good should specialize in that good.

th ability to make somethingusing fewer resources than the other producers use.

ability to make something at a lower cost than other producers face.

the direct exchange of one good for another without using money.

breaking down the production of a good into seperate tasks.

focusing work effort on a particular product or a single task.

a curve showing alternative combinations of goods that can be produced when available resources are used efficiently; a boundry line between inefficent and unattainable combinations.

condition that exists when there is no way resources can be reallocated to increase production of one good without decreasing production of another; getting the most from available resources.

to produce more of one good, a successively larger amount of the other good must be sacrificed.

an increase in the economy's ability to produce goods and services; reflected by an outward shift of the economies production possibilities frontier.

formal and informal institutuions that support the economy-laws, customs, manners, conventions, and other institutional underpinnings that encourage people to pursue productive activity.

set of mechanisms ans institutions that resolve the what, how, and for whom questions.

an economic system characterized by the private ownership of resources and the use of prices to cordinate economic activity in unregulated markets.

an owner's right to use, rent, or sell resources or property.

an economic system characterized by the public ownership of resources and centralized planning.

an economic system characterized by the private ownership of some resources and the public ownership of other resources; some markets are regulated by the government.

satisfaction received from consumption; sense of well being.

cash or in-kind benefits given to individuals as outright grants from the governement.

development of large-scale factory production that began in Great Britain around 1750 and spread to the rest of Europe, North America, and Australia.