PRINCIPLES OF ECONOMICS - EXAM 1
STUDY SET | QUESTIONS AND ANSWERS |
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, Equality The property of distributing economic prosperity uniforming among members of society
Opportunity cost What must be given up in order to obtain something else
If you want one opportunity you may need to miss another
Rational People People who have systematically and purposefully do the best they can to achieve their
objective
Marginal change A small incremental adjustment to a plan of action
Incentive Something that induces a person to act (ex. rewards cards)
Market Economy An economy that allocates resources through the centralization of many firms and
households.
An economy based on spending money
Property Rights The ability of an individual to own and exercise control over scarce resources
Market Failure A system in which a market, left on its own, fails to allocate resources efficiently
When the market fails to provide products to the target audience
Externality Impact of one person's actuins in the well being of a bystander.
Ex. FEMA impacts Home Depot
Market Power The ability of a single economic actor or a small group of actors to have substantial
influence on market influence
Productivity The quantity of goods and services produced from each unity of labor input
Inflation Increase int he average price we pay for goods and services
More money in rotation, the less it is worth
Business Cycle graph Economic boon and bust in consistent rotation with an equilibrium - economy constantly
in motion. Sine graph
Role of assumption Assumptions simplify the complex world and make it easier for us to understand
STUDY SET | QUESTIONS AND ANSWERS |
EXAM PREP| GRADED A+ | GUARANTEED
SUCCESS
Updated Questions and Answers | 100% Verified Exam Prep
, Equality The property of distributing economic prosperity uniforming among members of society
Opportunity cost What must be given up in order to obtain something else
If you want one opportunity you may need to miss another
Rational People People who have systematically and purposefully do the best they can to achieve their
objective
Marginal change A small incremental adjustment to a plan of action
Incentive Something that induces a person to act (ex. rewards cards)
Market Economy An economy that allocates resources through the centralization of many firms and
households.
An economy based on spending money
Property Rights The ability of an individual to own and exercise control over scarce resources
Market Failure A system in which a market, left on its own, fails to allocate resources efficiently
When the market fails to provide products to the target audience
Externality Impact of one person's actuins in the well being of a bystander.
Ex. FEMA impacts Home Depot
Market Power The ability of a single economic actor or a small group of actors to have substantial
influence on market influence
Productivity The quantity of goods and services produced from each unity of labor input
Inflation Increase int he average price we pay for goods and services
More money in rotation, the less it is worth
Business Cycle graph Economic boon and bust in consistent rotation with an equilibrium - economy constantly
in motion. Sine graph
Role of assumption Assumptions simplify the complex world and make it easier for us to understand
