RAGAN MICROECONOMICS
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1. factors of production resources used to produce goods and services; land, labor, capital
2. goods tangible products
3. services intangible products
4. consumption the act of using goods or services
5. production the cat of making goods or services
6. consumption the act of using goods or services to satisfy wants
7. opportunity cost the value of the next best alternative that is forgone when one alter-
native is chosen
8. production possibilities a curve showing which alternative combinations of output can be at-
boundary tained is all available resources are used efficiently; it is the boundary
between attainable and unattainable output combinations
9. resource allocation the allocation of an economy's scarce resources among alternative
uses
10. specialization of labor the specialization of individual workers in the production of particular
goods or services
11. division of labor the breaking up of a production process into a series of specialized
tasks, each done by a different worker
12. traditional economy an economy in which behaviour is based mostly on tradition
13. command economy an economy in which most economic decisions are made by a central
planning authority
14. free-market economy an economy in which most economic decisions are made by private
households and firms
, RAGAN MICROECONOMICS
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15. mixed economy an economy in which some economic decisions are made by firms
and households and some by the government
16. normative statement a statement about what ought to be; value judgement
17. positive statement a statement about what actually is, was, or will be; NOT a value
judgement
18. endogenous variable a variable that is explained within a theory; induced variable; depen-
dent variable
19. exogenous variable a variable that is determined outside the theory; autonomous vari-
able; independent variable
20. index number a measure of some variable, conventionally expressed relative to a
base period, which is assigned the number 100
21. quantity demanded the amount of a good or service that consumers want to purchase
during some period
22. demand schedule a table showing the relationship between quantity demanded and the
price of a commodity
23. demand curve the graphical representation of the relationship between quantity
demanded and the price of a commodity
24. demand the entire relationship between the quantity of a commodity that
buyers want to purchase and the price of that commodity
25. substitution in consump- goods that can be used in place of another good to satisfy similar
tion needs or desires
26. complements in con- goods that can be consumed together
sumption
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1. factors of production resources used to produce goods and services; land, labor, capital
2. goods tangible products
3. services intangible products
4. consumption the act of using goods or services
5. production the cat of making goods or services
6. consumption the act of using goods or services to satisfy wants
7. opportunity cost the value of the next best alternative that is forgone when one alter-
native is chosen
8. production possibilities a curve showing which alternative combinations of output can be at-
boundary tained is all available resources are used efficiently; it is the boundary
between attainable and unattainable output combinations
9. resource allocation the allocation of an economy's scarce resources among alternative
uses
10. specialization of labor the specialization of individual workers in the production of particular
goods or services
11. division of labor the breaking up of a production process into a series of specialized
tasks, each done by a different worker
12. traditional economy an economy in which behaviour is based mostly on tradition
13. command economy an economy in which most economic decisions are made by a central
planning authority
14. free-market economy an economy in which most economic decisions are made by private
households and firms
, RAGAN MICROECONOMICS
Study online at https://quizlet.com/_5so2nx
15. mixed economy an economy in which some economic decisions are made by firms
and households and some by the government
16. normative statement a statement about what ought to be; value judgement
17. positive statement a statement about what actually is, was, or will be; NOT a value
judgement
18. endogenous variable a variable that is explained within a theory; induced variable; depen-
dent variable
19. exogenous variable a variable that is determined outside the theory; autonomous vari-
able; independent variable
20. index number a measure of some variable, conventionally expressed relative to a
base period, which is assigned the number 100
21. quantity demanded the amount of a good or service that consumers want to purchase
during some period
22. demand schedule a table showing the relationship between quantity demanded and the
price of a commodity
23. demand curve the graphical representation of the relationship between quantity
demanded and the price of a commodity
24. demand the entire relationship between the quantity of a commodity that
buyers want to purchase and the price of that commodity
25. substitution in consump- goods that can be used in place of another good to satisfy similar
tion needs or desires
26. complements in con- goods that can be consumed together
sumption
