Econ Assignment 1/MUST KNOW

An economy that allocates resources through the decentralized decisions of manyrms and households as they interact in markets for goods and services

The study of how households and rms make decisions and how they interact in markets

People who systematically and purposefully do the best they can to achieve their objectives

Whatever must be given up to obtain some item

*A good for which, other things equal, an increase in income leads to a decrease in demand

Something that induces a person to act

The study of how society manages its scarce resources

The limited nature of society's resources

An increase in the overall level of prices in the economy

Claims that attempt to prescribe how the world should be

The claim that, other things equal, the quantity demanded of a good falls whenthe price of the good rises

*A good for which, other things equal, an increase in income leads to an increase in demand

The property of society getting the most it can from its scarce resources

Claims that attempt to describe the world as it is

Two goods for which an increase in the price of one leads to an increase in the demand for the other

The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises

The study of economy-wide phenomena, including in ation, unemployment, and economic growth

Two goods for which an increase in the price of one leads to a decrease in the demand for the other

*What causes shortage?

*Tax levied shifts demand curve to the...

*The word Economics came from the ______ and means ______.

*Prices reflect _____  __  _______ & ___  __  ______

*Where are the prices reflected in?

*Economists rely on ________ offered by _______.

*What is economic activity guided by?

*What market does not have an influence in price?

*In compliment goods, Good ______, then demand for other good _____