Micro economics test 1 Beau

  1. Horizontal axis
    The determining Factor goes here
  2. Vertical Axis
    The dependent Factor goes here
  3. Direct Relationship
    The relationship between 2 variables that change in the same direction, for example, product price and quantity supplied; positive relationship.
  4. Inverse relationship
    The relationship between 2 variables that change in opposite directions, for example, product price and quantity demanded, negative relationship.
  5. Independent variable
    the cause or source; it is the variable that changes first.
  6. Dependent variable
    the effect or outcome; it is the variable that changes because of the change in the independent variable.
  7. Slope of a straight line
    The ratio of the vertical change (rise or drop) to the horizontal change (the run) between any 2 points of the line.
  8. Vertical intercept
    the point where the line meets the vertical axis.
  9. Economic system
    A particular set of institutional arrangements and a coordinating mechanism-to respond to the economizing problem.

    Has to determine what goods are produced, who gets them, how to accomodate change, and how to promote technological progress.
  10. Command Syestem

    Government owns mmost property resources and economic decision making occurs through a central economic plan.
  11. Market System

    Private ownership of resources and the use of markets and prices to coordinate and direct economic activity.
  12. Private Property
    pRIVATE INDIVIDUALS AND FIRMS own most of the property resources and land.
  13. Freedom of enterprise
    Entrepreneurs and private businesses are free to obtain and use economic resources to produce their choice of goods and services and to sell them in their chosen markets.
  14. Freedom of Choice
    enables owners to employ or dispose of their property and money as they see fit. Also allows workers to try to enter any line of work for which they are qualified. Also ensures that consumers are free to buy goods and services that best satisfy their wants and that their budgets allow.
  15. Competition
    The prescence in a market of independent buyers and sellers competing with one another along with freedom of buyers and sellers to enter and leave the market.
  16. Market
    An institution or mechanism that brings buyers (demand) and sellers (suppliers) into contact.
  17. Specialization
    Use of resources of an individual, firm, region, or nation to produce one or a few goods or services rather than the entire range of goods and services.
  18. Division of Labor
    The separation of the work required to produce a product into a number of different tasks that are performed by different workers, specialization of workers.
  19. Medium of exchange
  20. Barter
    Exchangeing good and services
  21. Money
    social invention to facilitate exchanges of goods and services
  22. Consumer soveriegnty
Card Set
Micro economics test 1 Beau
Test 1 Micro economics Mgccc