Micro Econ Chapter 1

  1. scarcity
    the limited nature of society's resources
  2. economics
    the study of how society manages it's scarce resources
  3. efficiency
    the property of society getting the most it can from it's scarce resources
  4. equality
    the property of distributing economic prosperity uniformly among the members of society
  5. opportunity cost
    whatever must be given up to obtain some item
  6. rational people
    people who systematically and purposefully do the best they can to achieve their objective
  7. marginal changes
    small incremental adjustiment to a plan of action
  8. incentive
    something that induces a person to act
  9. market ecomony
    an economy that allocates resources throught the decetnralized decisions of many firms and households as they interact in markets for good and services
  10. property rights
    the ability of an individual to won and exercise control over scarce resources
  11. market failure
    a situation in which a market left on its own fails to allocate resources efficiently
  12. externality
    the impact of one person's actions on the well-being of a bystander
  13. market power
    the ability of a single economic actor to have a substantial influence on market prices
  14. productivity
    the quantity of good and services produced form each unit of labor impact
  15. inflation
    an increase in the overall level of prices in the economy
  16. business cycle
    fluctuations in economic activity, such as employment and production.
Card Set
Micro Econ Chapter 1
Chapter 1 Key Concepts