My Actual Vocab

My Actual Vocab - Chapter One Vocab. Scarcity-the limited...

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Chapter One Vocab. Scarcity- the limited nature of society’s resources Economics- the study of how society manages its scarce resources Efficiency -the property of society getting the most it can from its scarce resources Equity- the property of distributing economic prosperity fairly among the members of society Opportunity Cost- whatever must be given up to obtain some item Rational People -people who systematically and purposefully do the best they can to achieve their objectives Marginal Changes -small incremental adjustments to a plan of action Incentive- something that induces a person to act Market Economy -an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services Property Rights- the ability of an individual to own and exercise control over scarce resources Market Failure -a situation in which a market left on its own fails to allocate resources efficiently Externality -the impact of one person’s actions on the wellbeing of a bystander Market Power -the ability of a single economic actor (or small group or actors) to have a substantial influence on market prices Productivity -the quantity of goods and services produced from each hour of a worker’s time Inflation -an increase in the overall level of prices in the economy Business Cycle- fluctuations in the economic activity, such as employment and production Chapter Two Vocab.
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Circular-flow diagram - a visual model of the economy that shows how dollars flow through markets among households and firms Production possibilities frontier - a graph that shows the combinations of output that the economy can possible produce given the available factors of production and the available production technology Microeconomics- the study of how households and firms make decisions and how they interact in markets Macroeconomics- the study of economy wide phenomena, including inflation, unemployment, and economic growth Positive statements - claims that attempt to describe the world as it is Normative statements - claims that attempt to prescribe how the world should be Chapter Three Vocab Absolute Advantage- the ability to produce a good using fewer inputs than another producer Opportunity Cost- whatever must be given up to obtain some item Comparative Advantage- the ability to produce a good at a lower opportunity cost than another producer Imports - goods produced abroad and sold domestically Exports -goods produced domestically and sold abroad Chapter Four Vocab Market- a group of buyers and sellers of a particular good or service Competitive Market- a market in which there are many buyers and sellers so that each has a negligible impact on the market Quantity Demanded- the amount of a good that buyers are willing and able to purchase Law of Demand- the claim that, other things equal, the quantity demanded of a good falls when the price of a good rises Demand Schedule- a table that shows the relationship between the price of a good and the quantity demanded
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My Actual Vocab - Chapter One Vocab. Scarcity-the limited...

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