for Macroeconomics Glenn Hubbard Anthony Patrick OBrien Complete Questions and Verified Answers
Glenn Hubbard and Anthony Patrick O'Brien Macroeconomics Study Guide | Recently Updated Verified scarcity - answer - Limited quantities of resources to meet unlimited wants. economics - answer - the study of how people seek to satisfy their needs and wants by making choices economic model - answer - a simplified version of reality used to analyze real-world economic situations market - answer - a group of buyers and sellers of a particular good or service marginal analysis - answer - analysis that involves comparing marginal benefits and marginal costs centrally planned economy - answer - An economy in which the government decides how economic resources will be allocated market economy - answer - an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services mixed economy - answer - An economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources trade-off - answer - the idea that because of scarcity, producing more of one good or service means producing less of another good or service opportunity cost - answer - the highest-valued alternative that must be given up to engage in an activity Productive Efficiency - answer - The situation in which a good or service is produced at the lowest possible cost. allocative efficiency - answer - An output level where the price equals the Marginal Cost (MC) of production. voluntary exchange - answer - a situation that occurs in markets when both the buyer and seller of a product are made better off by the transaction Equity (Economic) - answer - Fair distribution of economic benefits. economic variable - answer - something measurable that can have different values, such as the wages of software programmers. positive analysis - answer - analysis concerned with what is normative analysis - answer - analysis concerned with what ought to be production possibilities frontier (PPF) - answer - a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology economic growth - answer - the ability of the economy to produce increasing quantities of goods and services trade - answer - the buying and selling of goods absolute advantage - answer - the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources comparative advantage - answer - the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers. product markets - answer - markets for goods- such as computers- and services- such as medical treatment. factor markets - answer - Markets for the factors of production, such as labor, capital, natural resources, and entrepreneurial ability factors of production - answer - the inputs used to produce goods and services circular flow diagram - answer - A model that illustrates how participants in markets are linked free market - answer - a market with few government restrictions on how a good or service can be produced or sold or on how a factor of production can be employed entrepreneur - answer - someone who is willing to assume the responsibility, risk and rewards of starting and operating a business property rights - answer - the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it. perfectly competitive market - answer - A market that meets the conditions of (1) many buyers and sellers, (2) all firms selling identical products, and (3) no barriers to new firms entering the market. demand schedule - answer - a table that shows the relationship between the price of a good and the quantity demanded quantity demanded - answer - the amount of a good or service that a consumer is willing and able to
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