Chapter 1 - Ten Principles of Economics Flashcards Preview

Economics > Chapter 1 - Ten Principles of Economics > Flashcards

Flashcards in Chapter 1 - Ten Principles of Economics Deck (16)
Loading flashcards...
1
Q

Opportunity cost

A

Whatever must be given up to obtain some item

2
Q

Efficiency

A

The property of society getting the most it can from its scarce resources

3
Q

Business cycle

A

Fluctuations in economic activity, such as employment and production

4
Q

Property rights

A

The ability of an individual to own and exercise control over scarce resources

5
Q

Market failure

A

A situation in which a market left on its own fails to allocate resources efficiently

6
Q

Scarcity

A

The limited nature of society’s resources

7
Q

Economics

A

The study of how society manages its scarce resources

8
Q

Productivity

A

The quantity of goods and services produced from each unit of labor input

9
Q

Equality

A

The property of distributing economics prosperity uniformly among the members of society

10
Q

Market power

A

The ability of a single economic actor (or small group of actors) to have a substantial influence on market prices

11
Q

Inflation

A

An increase in the other all level of prices in the economy

12
Q

Externality

A

The impact of one persons actions on the well-being of a bystander

13
Q

Marginal change

A

A small incremental adjustment to a plan of action

14
Q

Incentive

A

Something that induces a person to act

15
Q

Rational people

A

People who systematically do the best they can to achieve their objectives

16
Q

Market economy

A

An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services