2056888-Econ-Vocab - Econ Vocab Ch. 1 Scarcitylimited...

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Econ Vocab Ch. 1 Scarcity— limited nature of society’s resources Economics— study of how society manages its scarce resources Efficiency— property of society getting the most it can from its scarce resources Equity— property of distributing economic prosperity fairly among the members of society Opportunity cost— whatever must be given up to obtain some item Marginal changes— small incremental adjustments to a plan of action 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 Market failure— situation in which a market left on its own fails to allocate resources efficiently Externality— impact of one person’s actions on the well-being of a bystander Market power— ability of a single economic actor (or small group of actors) to have a substantial influence on market prices Productivity— amount of goods and services produced from each hour of a worker’s time Inflation— increase in the overall level of prices in the economy Phillips curve— curve that shows the short-run tradeoff between inflation and unemployment Ch. 2 Circular-flow diagram— visual model of the economy that shows how dollars flow through markets among households and firms Production possibilities frontier— graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology Microeconomics— study of how households and firms make decisions and how they
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This note was uploaded on 11/03/2011 for the course REAL ESTAT 83676 taught by Professor Unknown during the Spring '97 term at Golden Gate.

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2056888-Econ-Vocab - Econ Vocab Ch. 1 Scarcitylimited...

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