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ecomionic
chapter 1
Term | Definition |
---|---|
economics | the social science that seeks to understand the choices people make it using scarce resources to meet their wants |
Microeconomics | individual units including household, business firm, and government agencies. |
Macroeconomics | large-scale economic phenomena particular inflation, unemployment, and economic growth |
factor of production | basic input of labor, capital, and natural resources used in producing all goods and services |
labor | production made by people working with their minds and muscles |
capitals | production that are created by people including tool, industrial equipment and, structures |
natural resources | anything that can be used as a productive in its natural state, such as farmland, building sites, forest, and mineral deposits |
opportunity cost | best possible alternative activity with the same time or resources |
Eco-efficiency | win-win situation. two people are both fully satisfied |
Eco-production | lose-win situation |
investment | in capital of economy stock production made by people |
Entrepreneurship | new opportunist and overcoming old limits |
comparative adv | greater strength in area |
Efficiency in distribution | people trading other product. |
positive economics | fact and the relationship among them. |
Normative economics | policies or conditions are good or bad |
four factor production | labor, natural resource, entrepreneurship and capital |
the economic thinking is | what ,who , how ,whom |
scarcity | means any situation in which there is not enough to fill everyone’s needs. |
The Economic Way of Thinking | -Scarcity and choice -Purposeful behavior -Marginal analysis |
Four Fundamental Economic Choices | -What will an economy produce? -How will goods and services be produced? -Who will produce those goods and services -For whom will goods be produced |
Monetary policies | policies on the supply of money and how it is controlled in order to control pricing. |
Fiscal policies | Policies on tax brackets and how to tax different people. |