ECO 1312 -- Exam I Study Guide.docx - ECO 1312 Chapter 1:...

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ECO 1312Chapter 1: Ten Principles of EconomicsScarcity -- the limited nature of society’s resourcesEfficiency -- the property of society getting the most it can from its scarce resourcesEquality -- the property of distributing economics prosperity uniformly among the members of societyOpportunity Cost -- whatever must be given up to obtain some itemRational People -- people who systematically and purposefully do the best they can to achieve theirobjectivesMarginal Change -- a small incremental adjustment to a plan of actionChapter 2: Thinking Like an EconomistProduction Possibilities Frontier -- a graph that shows the combinations of output that the economy canpossibly produce given the available factors of production and the available production technologyCircular-Flow Diagram -- a visual model of the economy that shows how dollars flow through marketsamong households and firmsProduction Possibilities FrontierCircular-Flow Diagram

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Term
Fall
Professor
Nuchereno

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