djk micro midterm flipped

Question 1

definition

Answer 1

term

Question 2

The study of how individuals and societies allocate limited resources to satisfy unlimited wants.

Answer 2

Economics

Question 3

A way of thinking that considers scarcity, opportunity costs, and rational behavior to make decisions.

Answer 3

Economic Perspective

Question 4

The fundamental problem of having limited resources to meet unlimited wants.

Answer 4

Scarcity

Question 5

The value of the next best alternative that must be forgone when making a choice.

Answer 5

Opportunity Cost

Question 6

The satisfaction or benefit gained from consuming a good or service.

Answer 6

Utility

Question 7

Comparing the additional benefits and additional costs of a decision.

Answer 7

Marginal Analysis

Question 8

A systematic process of hypothesis formulation, testing, and refinement in economics.

Answer 8

Scientific Method

Question 9

A widely accepted generalization about economic behavior or the economy.

Answer 9

Economic Principle

Question 10

The assumption that factors other than those being considered do not change.

Answer 10

Other-Things-Equal Assumption (Ceteris Paribus)

Question 11

The study of individual consumers, firms, and markets.

Answer 11

Microeconomics

Question 12

The study of the overall economy, including inflation, unemployment, and economic growth.

Answer 12

Macroeconomics

Question 13

A total or sum of individual parts, often used in macroeconomics to refer to total outputs or total demand.

Answer 13

Aggregate

Question 14

The branch of economics that deals with objective analysis and facts.

Answer 14

Positive Economics

Question 15

The branch of economics that involves value judgments about what the economy should be like.

Answer 15

Normative Economics

Question 16

The need to make choices because economic wants exceed available resources.

Answer 16

Economizing Problem

Question 17

A graph showing all combinations of goods that can be purchased with a given budget.

Answer 17

Budget Line

Question 18

The inputs used to produce goods and services, categorized as land, labor, capital, and entrepreneurial ability.

Answer 18

Economic Resources

Question 19

Natural resources used in production.

Answer 19

Land

Question 20

Human effort used in the production of goods and services.

Answer 20

Labor

Question 21

Manufactured goods used to produce other goods and services (factories, machinery).

Answer 21

Capital

Question 22

The act of purchasing capital goods to increase future production.

Answer 22

Investment

Question 23

The ability to combine other resources, take risks, and innovate.

Answer 23

Entrepreneurial Ability

Question 24

Individuals who use entrepreneurial ability to bring resources together to produce goods and services.

Answer 24

Entrepreneurs

Question 25

Land, labor, capital, and entrepreneurial ability.

Answer 25

Factors of Production

Question 26

Goods used by individuals for personal satisfaction.

Answer 26

Consumer Goods

Question 27

Goods used to produce other goods (e.g., machinery, factories).

Answer 27

Capital Goods

Question 28

A graph that shows the combinations of two goods that an economy can produce, given its resources.

Answer 28

Production Possibilities Curve (PPC)

Question 29

As production of one good increases, the opportunity cost of producing an additional unit rises.

Answer 29

Law of Increasing Opportunity Costs

Question 30

The expansion of the economy’s capacity to produce goods and services over time.

Answer 30

Economic Growth

Question 31

The way a society organizes the production, distribution, and consumption of goods.

Answer 31

Economic System

Question 32

An economic system with minimal government intervention.

Answer 32

Laissez-Faire Capitalism

Question 33

An economic system in which the government controls resources and production decisions.

Answer 33

Command System

Question 34

An economic system where decisions are made by individuals and firms interacting in markets.

Answer 34

Market System

Question 35

The right to own and control resources and products.

Answer 35

Private Property

Question 36

The ability of businesses to obtain resources and sell products freely.

Answer 36

Freedom of Enterprise

Question 37

The freedom of consumers to buy what they want.

Answer 37

Freedom of Choice

Question 38

Individuals' pursuit of personal benefit, driving economic decisions.

Answer 38

Self-Interest

Question 39

The rivalry among sellers in a market.

Answer 39

Competition

Question 40

A mechanism that brings buyers and sellers together.

Answer 40

Market

Question 41

The focus of a business or individual on producing one or a few goods efficiently.

Answer 41

Specialization

Question 42

Splitting production processes into different tasks to increase efficiency.

Answer 42

Division of Labor

Question 43

Anything widely accepted in exchange for goods and services (e.g., money).

Answer 43

Medium of Exchange

Question 44

The exchange of goods and services without money.

Answer 44

Barter

Question 45

A commonly accepted medium of exchange.

Answer 45

Money

Question 46

The concept that consumers decide what goods and services will be produced.

Answer 46

Consumer Sovereignty

Question 47

When consumers spend money, they effectively “vote” for the production of certain goods.

Answer 47

Dollar Votes

Question 48

The process by which new products and methods replace old ones.

Answer 48

Creative Destruction

Question 49

A metaphor for the self-regulating nature of markets.

Answer 49

Invisible Hand

Question 50

A model showing the flow of goods, services, and money between households and businesses.

Answer 50

Circular Flow Diagram

Question 51

Individuals or groups who provide resources and purchase goods and services.

Answer 51

Households

Question 52

Organizations that buy resources to produce and sell goods and services.

Answer 52

Businesses

Question 53

A business owned and operated by one person.

Answer 53

Sole Proprietorship

Question 54

A business owned by two or more people.

Answer 54

Partnership

Question 55

A business that is a separate legal entity from its owners.

Answer 55

Corporation

Question 56

Where goods and services are bought and sold.

Answer 56

Product Market

Question 57

Where resources (like labor and capital) are bought and sold.

Answer 57

Resource Market

Question 58

The individual or entity entitled to the remaining income after all expenses are paid.

Answer 58

Residual Claimant

Question 59

The quantity of a good or service that consumers are willing and able to purchase at various prices.

Answer 59

Demand

Question 60

A table showing the quantity demanded at various prices.

Answer 60

Demand Schedule

Question 61

As the price of a good rises, the quantity demanded falls, ceteris paribus.

Answer 61

Law of Demand

Question 62

As more units of a good are consumed, the additional satisfaction from consuming one more unit declines.

Answer 62

Diminishing Marginal Utility

Question 63

As the price of a good falls, the consumer’s purchasing power increases, leading to higher quantity demanded.

Answer 63

Income Effect

Question 64

As the price of a good falls, it becomes more attractive relative to substitutes, increasing the quantity demanded.

Answer 64

Substitution Effect

Question 65

A graphical representation of the relationship between price and quantity demanded.

Answer 65

Demand Curve

Question 66

Factors other than price that affect demand (e.g., income, tastes).

Answer 66

Determinants of Demand

Question 67

Goods for which demand increases as income rises.

Answer 67

Normal Goods

Question 68

Goods for which demand decreases as income rises.

Answer 68

Inferior Goods

Question 69

Goods that can be used in place of each other.

Answer 69

Substitute Goods

Question 70

Goods that are consumed together.

Answer 70

Complementary Goods

Question 71

A shift in the demand curve due to factors other than price.

Answer 71

Change in Demand

Question 72

Movement along the demand curve due to a price change.

Answer 72

Change in Quantity Demanded

Question 73

The quantity of a good that producers are willing and able to sell at various prices.

Answer 73

Supply

Question 74

A table showing the quantity supplied at various prices.

Answer 74

Supply Schedule

Question 75

As the price of a good rises, the quantity supplied increases, ceteris paribus.

Answer 75

Law of Supply

Question 76

A graphical representation of the relationship between price and quantity supplied.

Answer 76

Supply Curve

Question 77

Factors other than price that affect supply (e.g., technology, resource prices).

Answer 77

Determinants of Supply

Question 78

A shift in the supply curve due to factors other than price.

Answer 78

Change in Supply

Question 79

Movement along the supply curve due to a price change.

Answer 79

Change in Quantity Supplied

Question 80

The price at which quantity supplied equals quantity demanded.

Answer 80

Equilibrium Price

Question 81

The quantity at which quantity supplied equals quantity demanded.

Answer 81

Equilibrium Quantity

Question 82

When quantity supplied exceeds quantity demanded.

Answer 82

Surplus

Question 83

When quantity demanded exceeds quantity supplied.

Answer 83

Shortage

Question 84

Producing goods in the least costly way.

Answer 84

Productive Efficiency

Question 85

Producing the right mix of goods, according to consumer preferences.

Answer 85

Allocative Efficiency

Question 86

A maximum price set by the government below the equilibrium price.

Answer 86

Price Ceiling

Question 87

A minimum price set by the government above the equilibrium price.

Answer 87

Price Floor