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EC0N0MICS
Mankiw, Principals of Economics
Question | Answer |
---|---|
business cycle | fluctuations in economic activity, such as employment and production |
economics | the study of how society manages its scarce resources |
efficiency | the property of society getting the most it can from its scarce resources |
equality | the property of distributing economic prosperity uniformly among the members of society |
externality | the impact of one person’s actions on the well-being of a bystander |
incentive | something that induces a person to act |
inflation | an increase in the overall level of prices in the economy |
marginal changes | small incremental adjustments to a plan of action |
market economy | an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services |
market failure | a situation in which a market left on its own fails to allocate resources efficiently |
market power | the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
opportunity cost | whatever must be given up to obtain some item |
productivity | the quantity of goods and services produced from each unit of labor input |
property rights | the ability of an individual to own and exercise control over scarce resources |
rational people | people who systematically and purposefully do the best they can to achieve their objectives |
scarcity | the limited nature of society’s resources |