CHPT 1 Flashcards
(18 cards)
Economics
the social science that concerns individuals, institutions and societies make optimal choices under conditions of scarcity
Scarcity
restrictions options and demands choices because “we cant have it all”
Opportunity cost
Known as the trade-off for certain actions
Utility
the pleasure happiness and satisfaction
Marginal Analysis
comparisons of marginal benefits and marginal costs usually for decision making
in a market system the allocation of scarce goods involves the consideration of
what must be sacrificed in using a resource for its next best use
Economist Classify Resources as
labor, land, real captial and entepenuers
becuase economic resources are used to produce goods and services they are called
factors of production or inputs
the marginal benefit curve is … sloping
downward
the marginal cost curve is … sloping
upward
When economist describe “a market” the mean:
A system that allows buyers and sellers interact with one another
Othe things being equal, the law of demand suggests that as:
the price of the product decreases the quantity demand will increase
Change in market price
movement along demand curve
Change in income
shift in demand curve
Change in consumer expectations
Shift in demand
change in the price of relate good
shift in demand curve
change in the price of a unrelated good
no change
change in preference for this goof
shift in demand curve
