Macroeconomics

Macroeconomics - Macroeconomics Chapter 1: Economics: The...

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Macroeconomics Chapter 1: Economics: The World Around You Scarcity -The shortage that exists when less of something is available than is wanted at a Zero price Economic Good -Any item that is scarce Free Good -A good for which there is no scarcity Economic Bad -Any item for which we would bay to have less Resources, Factors of Production, or Inputs -Goods used to produce other goods, i.e. land, Labor, and capital Land -All natural resources such as minerals, timber, and water, as well as the land itself Labor -The physical and intellectual services of people, including the training education, And abilities of the individual in a society Capital -Products such as machinery and equipment that are used in production Rational Self-Interest -the means by which people choose the options that give them Positive Analysis -Analysis of what is Normative Analysis -Analysis of what out to be Fallacy of Composition -The mistaken assumption that what applies in the case of what Applies in the case of one applies o the case of many Association as Causation -The mistaken assumption that because two events seem to Occur together, one cause the other Microeconomics -The study of economics at the level of the individual Macroeconomics -The study of the economy as a whole
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Chapter 2: Choice, Opportunity Costs, and Specialization Opportunity Costs -The highest-valued alternative that must be forgone when a choice is made Tradeoff -The giving up of one good or activity in order to obtain some other good or activity Marginal Cost -Additional cost Marginal Benefit -Additional benefit Production Possibilities Curve (PPC) - A graphical representation showing the maximum Quantity of goods and services that can be produced using limited resources to the fullest Extent possible Marginal Opportunity Cost -the amount of one good or service that must be given up to obtain One additional unit of another good or service, no matter how many units are being Produced Comparative Advantage -the ability to produce a good or service at a lower opportunity cost than Someone else
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Chapter 3: Markets, Demand and Supply, and the Price System Market -A place or service that enables buyers and sellers to exchange goods and services Barter -The direct exchange of goods and services without the use of money Double Coincidence of Wants - the situation that exist when A has what B wants and B has what A wants Transaction Costs -the costs involved in making an exchange Relative Price -the price of one good expressed in terms of the price of another good Demand -the amount of a product that people are willing and able to purchase at each possible Price during a given period of time, everything else held constant Quantity Demanded -the amount of a product that people are willing and able to purchase at a Specific price Law of Demand -the quantity of a well-defined good or service that people are willing and able To purchase during a particular period of time decreases as the price of a good or service Rises and increases as the price falls, everything else held constant
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This note was uploaded on 04/07/2008 for the course ECON 111 taught by Professor H during the Spring '07 term at UConn.

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Macroeconomics - Macroeconomics Chapter 1: Economics: The...

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