ECON 1b STUDY GUIDE - Chapter 1 KEY TERMS Match each word...

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Chapter 1 K EY T ERMS Match each word or phrase listed below with the corresponding definition or description. aggregate level of output capital ceteris paribus economic models endogenous variables exogenous variables fallacy of composition general price level industry labor land macroeconomics market microeconomics normative statements overall employment positive statements resources scarcity _________________ 1. Human wants are unlimited in relation to the available resources in the economy; with the available resources we cannot satisfy the collective wants of all the members of the society. _________________ 2. Those things we use to produce goods and services; also called production inputs or factors of production. _________________ 3. All natural resources such as agricultural land, mineral resources, timberlands, and underwater resources. _________________ 4. Human effort; measured by the “person‐hour.” _________________ 5. All produced means of production. _________________ 6. The study of the decisions made by individual decision‐making units and economic conditions prevailing in one particular market or industry. _________________ 7. Any institution that brings buyers and sellers of a good or service together. _________________ 8. A collection of firms that produce identical or nearly identical products. _________________ 9. Study of the behavior of aggregate economic variables such as the aggregate level of output, the overall price level, and overall employment. _________________ 10. Average of the prices of all the goods and services produced in a country. _________________ 11. The number of people with jobs in an economy. _________________ 12. The sum total of all the goods and services produced in a country. _________________ 13. The notion that what is true for one individual may not be true for the sum of all the individuals. _________________ 14. Statements about how things are, or how we think they are; don’t make any value judgment about whether any particular state or outcome is good or bad. _________________ 15. Statements involving judgments; the person making the statement considers the present state of things or the outcome of a decision to be good or bad. _________________ 16. Simplified versions of reality that economists develop to analyze and understand the complex economic relationships that exist in the
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real world. _________________ 17. Variables whose values are determined inside the model on the basis of the values of the other variables. _________________ 18. Variables whose values are determined outside the model on the basis of other factors, and are therefore known to the analyst. _________________ 19. Latin phrase meaning “all else the same;” used to indicate that all other exogenous variables are kept unchanged during analysis. M
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This note was uploaded on 06/01/2010 for the course ECON 1b taught by Professor Sheffrin during the Spring '07 term at UC Davis.

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ECON 1b STUDY GUIDE - Chapter 1 KEY TERMS Match each word...

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